Daily Forex Fundamentals – August 31, 2012

What’s on the Economic Horizon

Euro zone to unload CPI and employment data
Canadian GDP growth seen at 0.1%
Ben Bernanke set to disappoint markets again?

U.S. Dollar (USD)

Some of yesterday’s reports may have printed in the red, but that didn’t stop the dollar from staging a solid rally! Buoyed by pre-Bernanke speech expectations, it was in hot demand as traders unloaded their holdings of risk assets. As a result, the American currency gained against all of its major counterparts except for the yen. Read more…

Euro (EUR)

Just like the reality TV show Jersey Shore, the euro got axed in yesterday’s trading. EUR/USD once again failed to rally past resistance at 1.2550, finishing the day 22 pips below its opening price at 1.2508. We also saw similar price action on EUR/JPY with the pair closing with a 23-pip loss at 98.37. Read more…

British Pound (GBP)

After consolidating for most of the European trading session, Cable was hit by a wave of selling due to risk aversion during the U.S. session. The pair fell to a new 2-day low as it dropped below the 1.5800 handle. Read more…

Japanese Yen (JPY)

When risk is off, the yen’s game is on! The Japanese currency dominated its major counterparts yesterday as risk sentiment favored safe haven currencies. It snatched 40 pips from the British pound, while gaining 23 pips against the euro. Can we expect more of the same today? Read more…

Canadian Dollar (CAD)

Is the Loonie losing its luster? The comdoll extended its losses against the dollar yesterday as risk aversion kicked in. USD/CAD traded higher after opening at .9894. By the New York session close, the pair was up at .9924. Read more…

Australian Dollar (AUD)

Say hello to one of yesterday’s biggest losers… the Aussie! It lost 59 pips against the Greenback as AUD/USD slid from its opening price of 1.0356 to end the day below the 1.0300 handle. Read more…

New Zealand Dollar (NZD)

One, two, three, four, five… Five is the number of days the commodity-based Kiwi has lost versus the safe haven Greenback! NZD/USD, which began the day .8010, ended the U.S. trading session 29 pips lower at .7981. Risk aversion seems to be the name of the game ahead of the Jackson Hole summit as high-yielding currencies, commodities, and equities sell-off. Read more…

Swiss Franc (CHF)

Due to the lack of market-moving data from Switzerland, USD/CHF exhibited little movement yesterday. Save for unexpected 50-pip risk aversion spike up during the morning U.S. trading session, the pair generally consolidated the entire day. Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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!

1 comment

  1. neil

    I refer to your comment on US$, Refering to the pair EUR/USD, a move down of 50 pips can hardly qualify for a “Solid Rally” for the USD ?? As of now the pair had just retraced fully and touches 1.2580 wiping out whatever USD had gained on your so call “solid rally”

    Reply

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