Daily Forex Fundamentals – August 7, 2013

What’s on the Economic Horizon

BOE Inflation Letter to dominate headlines
German factory orders boost the EUR
Canadian Ivey PMI on tap
RBA cuts rates

U.S. Dollar (USD)

The Greenback was unable to hold its footing yesterday as it lost a bit of ground in the foreign exchange market. The U.S. dollar index, which is widely used by traders to gauge the overall strength of the currency, closed the day at 82.09, 25 percentage points lower from where it had begun. Read more…

Euro (EUR)

Aww, snap! Positive data just came out of the euro zone, you know what that means right?? That’s right, some euro lovin’! Yesterday, the shared currency finished higher against its counterparts thanks to better-than-expected German factory orders.
Read more…

British Pound (GBP)

Positive reports from the U.K. didn’t do the pound any favors as it got clobbered by its counterparts yesterday. GBP/USD failed to go for a third straight positive day, and GBP/JPY, GBP/AUD, and EUR/GBP all showed pound weakness. Read more…

Japanese Yen (JPY)

Show us the money! The Japanese yen flexed its muscles again yesterday, enabling it to rally versus its western counterparts. USD/JPY, for instance, closed the day at 97.72, a solid 52 pips lower from its Asian session opening price. Read more…

Canadian Dollar (CAD)

The Loonie was no match for the dollar yesterday after dismal figures were released from Canada. It incurred an 11-pip loss as USD/CAD finished at 1.0374 following the release of the Canadian trade balance report. Read more…

Australian Dollar (AUD)

Did the Aussie experience the good ol’ “sell the rumor, buy the news” phenomenon? It appears it did as the currency gained despite the RBA’s rate cut. If you look at the Aussie’s price action, you’d see that the Aussie had been selling off heavily prior the event and then suddenly rose when the actual rate cut was announced. AUD/USD is currently trading at .8958, more than 100 pips higher from its lowest level this week. Read more…

New Zealand Dollar (NZD)

It’s 0-2 in favor of the Kiwi bulls this week! NZD/USD popped higher for a second day in a row after a profit-taking scenario hit the comdolls. Did New Zealand’s economic reports have anything to do with the Kiwi’s price action at all? Read more…

Swiss Franc (CHF)

Ho-hum. With no news out from Switzerland, USD/CHF and EUR/CHF danced to the tune of the dollar and the euro. Will the franc get a chance to make its own moves today? 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!