Daily Forex Fundamentals – December 20, 2011

What’s on the Economic Horizon

Swiss trade balance data on tap
Germany to publish heavy reports
Canadian CPI to stay flat?
U.S. building permits expected to tick down

U.S. Dollar (USD)

It didn’t take long for bulls to regain control of the dollar. They put its two-day slide to an end and erased some of its recent losses as a flight to safety boosted the safe haven currency. While EUR/USD slid 52 pips to close at 1.2995, USD/JPY finished 25 pips higher and ended at 78.03. Can the dollar hold on to its gains this time around? Read more…

Euro (EUR)

Looks like we got a couple of good news reports from the euro region yesterday. So why exactly did the euro weaken against its major counterparts? EUR/USD capped the day 52 pips below its open price at 1.2995, while EUR/CHF extended its losses by another 32 pips to 1.2182. What gives? Read more…

British Pound (GBP)

Ho hum… It was another day of ranging for GBP/USD as the pair paced back and forth between support around 1.5475 and resistance at 1.5550. GBP/JPY was also stuck in consolidation as it bounced from 120.50 and stayed below 121.00. Will the sideways price action continue today? Read more…

Japanese Yen (JPY)

With news of Kim Jong Il’s death unnerving the Asian markets, the Japanese yen had a hard time finding its footing. It dropped early in the day and was never really able to recover. Against the dollar, it lost 25 pips as USD/JPY closed just 3 pips above the 78.00 major psychological level. On the other hand, it won a consolation victory against the euro as EUR/JPY inched 8 pips down to 101.40. Read more…

Canadian Dollar (CAD)

The Loonie woke up on the wrong side of the charts as risk aversion overshadowed better-than-expected economic reports from Canada. USD/CAD ended up rising for a second day in a row, climbing by another 23 pips to 1.0386. Read more…

Australian Dollar (AUD)

It was a bad day to be a comdoll yesterday as the markets weren’t on a risk-taking mood! As a result, the Aussie was dumped by traders and AUD/USD closed 102 pips lower at .9888. Will today’s monetary policy meeting minutes provide it with support? Read more…

New Zealand Dollar (NZD)

NZD/USD edged lower yesterday as news of North Korean leader Kim Jong Il’s death caused traders to worry about military tension in the region. The pair closed a hundred pips down from its .7645 open price. Read more…

Swiss Franc (CHF)

The Swissy sure knows how to keep it tight! USD/CHF stuck close to its week open price of .9365 while EUR/CHF managed to stay below the 1.2200 handle. Will the Swissy find a clearer direction today? Read more…

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