Daily Forex Fundamentals – December 13, 2012

What’s on the Economic Horizon

U.S. Retail Sales, Producer Price Index, and Unemployment Claims on Deck
Eurogroup Summit Begins Today
SNB Expected to Keep Libor Rate Below 0.25%

U.S. Dollar (USD)

Three strikes and you’re out! For the third straight day yesterday, the safe haven Greenback found itself selling off across the board. The U.S. dollar index, which tracks the performance of the currency versus a basket of other major currencies, fell to 80.27 from 80.52. Read more…

Euro (EUR)

Who just celebrated a three-peat victory against the dollar and the yen? The euro bulls did! Thanks to risk appetite and the Fed’s FOMC minutes, EUR/USD shot up by another 77 pips while EUR/JPY flew by 104 pips. Booyah! Read more…

British Pound (GBP)

Make that three in a row! The pound was able to extend its winning streak against the dollar and the yen for another day as GBP/USD closed at 1.6159 while GBP/JPY ended the day with a 150-pip win. Will these pound pairs be able to keep it up? Read more…

Japanese Yen (JPY)

The yen found itself holding on to the short end of the stick in yesterday’s trading session. It came out as the biggest loser in the foreign exchange market as it was the currency that gave up the most ground to the dollar, the pound, and the euro. USD/JPY climbed to 83.19 from 82.50, GBP/JPY rose to 134.42 from 132.92, and EUR/JPY flew to 108.82 from 107.28. Read more…

Canadian Dollar (CAD)

Canada might not have released any economic report yesterday but that didn’t stop the Loonie bulls from charging! USD/CAD fell by another 26 pips after dropping to an intraday low of .9826. Was the reason for the Loonie’s strength any different from the other high-yielding currencies? Read more…

Australian Dollar (AUD)

Let’s give a round of applause for the Aussie, please! Thanks to the dovish FOMC statement, the Aussie was able to beat the safe haven Greenback to a pulp yesterday. AUD/USD, which began the Asian trading session at 1.0521, finished the day strongly at 1.0565. Read more…

New Zealand Dollar (NZD)

Another rally for the Kiwi! NZD/USD has been climbing all week as it surged past the .8400 barrier then closed at .8439 yesterday. Will this commodity currency be able to hold on to its gains or will it retreat? Read more…

Swiss Franc (CHF)

USD/CHF dove back below the .9300 handle yesterday as the FOMC statement weighed on the Greenback. The pair dipped to a low of .9243 before ending the day at .9258. Will the selling pressure force USD/CHF to break below the .9250 support zone? Read more…

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