Daily Forex Fundamentals – August 3, 2011

What’s on the Economic Horizon

ADP Non-Farm Change and ISM Non-Manufacturing PMI on Deck
Euro zone Retail Sales up 0.5% in June

U.S. Dollar (USD)

For the second straight day, the dollar was able to snatch a victory over other major currencies. The dollar index closed the U.S. trading session at 74.88, 16 percentage points higher where it was during the Asian session. Read more…

Euro (EUR)

Another down day for the euro, as risk aversion continued to dominate the markets. EUR/USD dropped 50 pips to finish at 1.4208. Meanwhile, EUR/CHF made yet another all-time low, falling nearly 200 pips to close at 1.0876! Mama mia! What’s going on?! Read more…

British Pound (GBP)

Despite positive data, the pound was able to end the day with a win against the dollar by a hairsbreadth when GBP/USD closed 9 pips from its opening price at 1.6308. Meanwhile, it pared its initial gains against the yen and closed at its opening price of 125.70. Read more…

Japanese Yen (JPY)

Pop question: Besides the dollar and the Swissy, which other major currency benefits greatly from risk aversion? The yen of course! Thanks to the slight case of risk aversion in the market, the yen was able to steal some pips from its Western counterparts yesterday. USD/JPY ended the day with a small 4-pip loss while EUR/JPY posted a 44-pip decline. Read more…

Canadian Dollar (CAD)

Make that 5 in a row for the Loonie! For the fifth consecutive day, USD/CAD closed higher as traders continued to unwind their position in higher yielding assets. The pair rose 37 pips to end the day at .9601. Can the Loonie bulls keep the party going and keep shufflin’ up the charts? Read more…

Australian Dollar (AUD)

Ouch! The Aussie took a very painful hit yesterday as the Reserve Bank of Australia (RBA) decided to leave rates unchanged and expressed its fear over the slowing global growth. AUD/USD, after it had climbed to an intraday high at 1.1000 prior the announcement, fell convincingly to end the U.S. trading session at 1.0800. Read more…

New Zealand Dollar (NZD)

Whoa! Is it open season for the Kiwi?? It looks like bears hunted down the currency in yesterday’s trading. NZD/USD plunged from its intraday high of .8785 all the way down to its closing price of .8670. Read more…

Swiss Franc (CHF)

Aaah, there’s nothing like good data and risk aversion to fuel the Swissy’s rally to fresh all-time highs. Holler! USD/CHF ended the day 183 pips below its opening price at .7650. Meanwhile, EUR/CHF closed a whopping 295 pips lower from where it opened at 1.0873. Read more…

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In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!