Daily Forex Fundamentals – December 15, 2011

What’s on the Economic Horizon
Chinese manufacturing PMI due today
Euro zone CPI expected to remain at 3.0%
SNB monetary policy decision on tap
U.S manufacturing indices to show improvements

U.S. Dollar (USD)

Hooray for the Greenback! Thanks to another run of risk aversion, the U.S. dollar was able to bag gains against its major counterparts yesterday. EUR/USD ended 19 pips below the 1.3000 major psychological level while USD/JPY closed 5 pips up from its 77.99 open price. Will we see another safe-haven rally today? Read more…

Euro (EUR)

It appears that traders aren’t done bullying the euro just yet. Yesterday, due to the elevated levels of risk aversion, the euro took another hit and was sold-off against the currencies considered by the market as “safe havens.” By the end of the U.S. trading session, the euro found itself trading below 1.3000 versus the dollar. Read more…

British Pound (GBP)

Thank goodness for good economic data! Despite the selloff in high-yielding currencies yesterday, the pound was able to come out relatively unscathed against its major counterparts. Cable ended the day with a 10-pip loss after dropping to an intraday low of 1.5409, but EUR/GBP also ended up falling by 26 pips to .8396. Read more…

Japanese Yen (JPY)

Somebody’s been pumping some iron! The Japanese yen flexed its muscles yesterday as risk aversion lingered for another day in the markets. The yen was able to end the day higher against most of its counterparts, except for the U.S. dollar as USD/JPY closed 4 pips above the 78.00 handle. Read more…

Canadian Dollar (CAD)

And the Loonie strikes out for the third time in a row! Due to the overwhelming case of risk aversion yesterday, the Loonie continued to give up ground to the Greenback. USD/CAD ended the U.S. trading session at 1.0396, 54 pips higher from its opening price. Read more…

Australian Dollar (AUD)

And the Aussie is back to the land down under! Down under parity, that is. AUD/USD sank below the 1.0000 mark and closed at .9908 as risk aversion trolled the markets yesterday. How low can the Aussie go? Read more…

New Zealand Dollar (NZD)

The color red is back in fashion for the Kiwi traders, and no, it’s not because Santa Clause is coming to town! No thanks to risk aversion and disappointing economic data from New Zealand, NZD/USD ended up in the red for the third day in a row this week. The pair dropped closed with a 54-pip drop to .7504. Yikes! Read more…

Swiss Franc (CHF)

Who’s one of the biggest losers yesterday? I’ll give you a clue. It starts with F and ends with -ranc! That’s right, it’s the franc! Poor economic data from Switzerland weakened the low-yielding franc despite the risk aversion in the markets, and sent USD/CHF 66 pips above its open price. 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!