Daily Forex Fundamentals – December 9, 2011

What’s on the Economic Horizon
All eyes on EU Summit today
Chinese inflation figures miss expectations
U.S. trade balance and consumer confidence data due

U.S. Dollar (USD)

It seemed that the markets were playing with the Greenback’s feelings yesterday as the U.S. currency was initially let down then cheered up in an instant. EUR/USD reached a high of 1.3460 then ended the day at 1.3340 while USD/JPY dipped to 77.14 before closing at 77.70. Hooray for volatility’s return! Read more…

Euro (EUR)

You gotta give it to the European officials – they definitely know how to maximize their impact under the spotlight! Between talks of EU Summit developments and the ECB’s interest rate decision, there was no lack of volatility-inducing events from the euro zone yesterday. Too bad it was all bearish for the euro! Read more…

British Pound (GBP)

The pound sank down the charts yesterday, as risk aversion weighed heavily on the markets. After consolidating for the better part of the day, GBP/USD dropped midway through the New York session and finished at 1.5635, down 71 pips on the day. Meanwhile, GBP/JPY finished at 121.49, marking a 47-pip loss. Read more…

Japanese Yen (JPY)

Thanks to risk aversion, the Japanese yen bounced back to life and bagged some gains against most of its counterparts yesterday. However, the yen lost a bit of ground to the U.S. dollar as USD/JPY ended the day 4 pips up from its 77.66 open price. Will risk aversion stay in play today? Read more…

Canadian Dollar (CAD)

Looks like the Loonie bears aren’t done with their feast yet! In fact, it seems like they’re stepping up their game! USD/CAD followed up with its gains the previous day and climbed 121 pips more, ending the day at 1.0224. Read more…

Australian Dollar (AUD)

After a couple of days being confined in a 50-pip range, AUD/USD went wild yesterday! The pair broke out of consolidation and surged to a high of 1.0380 before sliding back down and closing at 1.0159. Meanwhile, AUD/JPY sank nearly a hundred pips from its 79.83 open price. Read more...

New Zealand Dollar (NZD)

Talk about a fake out! After spiking above key resistance at .7830, the Kiwi traded to the beat of risk aversion as it boogied down the charts late in the New York session. The pair ended the day at .7725, down 67 pips on the day. Read more…

Swiss Franc (CHF)

What a wild and wacky day for the Swissy! After spiking to as low as .9177, USD/CHF soon recovered and managed to close at .9263, marking a 22-pip gain on the day. Read more…

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