Daily Forex Fundamentals – August 9, 2011

What’s on the Economic Horizon

Chinese CPI Beats Forecast
Will Economic Reports Boost the Pound?
German Trade Balance Report on Tap!

U.S. Dollar (USD)

Just like my homeboy Kanye West, the dollar made it back to the spotlight for the wrong reasons. It benefited from the wave of risk aversion sparked by S&P’s move to downgrade U.S. debt. Read more…

Euro (EUR)

The euro headed downhill against the dollar yesterday as risk aversion took hold of the market again. After it had gapped up to start the week on a strong note, EUR/USD was sold-off all throughout the day to close the U.S. trading session 197 pips lower. Read more…

British Pound (GBP)

It got crazy in the U.K. yesterday, and no, I’m not just talking about the riots. The pound took a backseat against most of its counterparts yesterday on mixed economic data from the U.K. and risk aversion in markets. GBP/USD went down by 124 pips to 1.6341, while EUR/GBP slipped back by 54 pips to .8696. Read more…

Japanese Yen (JPY)

Oh yeah! The yen was able to flex its muscles on the charts yesterday as risk aversion highlighted its safe haven rep. It won against all of its major counterparts, gaining the most from the euro and the pound with 183 pips and 130 pips, respectively. Read more…

Canadian Dollar (CAD)

While not as excessive as the Aussie, the Loonie received a beating from the Greenback yesterday. USD/CAD edged lower throughout the day and found itself trading 80 pips lower from its opening price by the end of the U.S. trading session. Read more…

Australian Dollar (AUD)

Uh-oh! It looks like Aussie bears are determined to push the Aussie back down to p-p-parity! The Aussie ended yesterday’s trading at its 19-week low against the dollar at 1.0225 with a 212-pip loss. Read more…

New Zealand Dollar (NZD)

My, how the mighty has fallen! After rising like rock star against the Greenback for the past couple of weeks, NZD/USD started the week by plunging 170 pips to .8249. Talk about starting off on the wrong side of the charts! Read more…

Swiss Franc (CHF)

The franc is on a roll! Thanks to continued risk aversion in markets, the franc continued to strengthen against its major counterparts yesterday. USD/CHF rose to fresh record highs and closed 107 pips lower than its closing price last Friday, while EUR/CHF also suffered a 126-pip loss at 1.0730. 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!