Daily Forex Fundamentals – August 5, 2011

What’s on the Economic Horizon

Non-Farm Payroll Figures on Deck
U.K. Producer Price Index for Input to Show a 0.6% Rise
Canada Expected to Have Added 17,700 Jobs

U.S. Dollar (USD)

What a good day Thursday turned out to be for the Greenback! Once again, risk aversion took hold of the market yesterday, helping the Greenback stage strong rallies versus other major currencies. The dollar index ended U.S. trading session at 75.60, a solid 114 percentage points higher from its Asian session open level. Read more…

Euro (EUR)

Eur[o] going dooown! No thanks to the ECB’s statements yesterday and the persistence of risk aversion in markets, the euro fell sharply against its major counterparts. EUR/USD dropped by a solid 206 pips to 1.4122, while EUR/CHF also fell by 175 pips. Meanwhile, the BOJ’s currency intervention dragged EUR/JPY to an intraday high of 114.18. Read more…

British Pound (GBP)

Boy! There’s nothing like risk aversion to get the market sheddin’ pounds! GBP/USD ended the day at 1.6269, 159 pips below its opening price. Meanwhile, GBP/JPY retreated from its intraday high of 130.87 to end the day at 128.71. Read more…

Japanese Yen (JPY)

What a surprise! The yen turned out to be yesterday’s biggest loser as Japan finance officials decided to finally step in and weaken their currency. The Japanese said that the yen was just too strong already and it could hurt their highly export-dependent economy. USD/JPY ended the U.S. trading session at 79.08, a whopping 210 higher from its opening price that day. Read more…

Canadian Dollar (CAD)

Let’s get ready to rumble! The Loonie was caught in a crossfire yesterday as the Bank of Japan actively weakened its currency against the Greenback. As a result, the scrilla gained against most of its major counterparts and pushed USD/CAD to a three-week high of .9796 where it closed. Read more…

Australian Dollar (AUD)

Like its fellow commodity-based currencies, the Aussie fell victim to risk aversion yesterday and took a major hit. AUD/USD ended the U.S. trading session with a huge 272-pip loss, marking its fourth consecutive daily loss. Read more…

New Zealand Dollar (NZD)

And that’s four days in a row! The Kiwi sank even deeper in the charts in yesterday’s trading, closing at its three-week low of .8358 after opening the day at .8620. Read more…

Swiss Franc (CHF)

The Swissy’s still got swagger like Mick Jagger! It ended yesterday’s trading at its new all-time high against the euro at 1.0762 after opening at 1.1013. Meanwhile, USD/CHF closed 55 pips below its opening price at .7636. 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!