Daily Forex Fundamentals – February 6, 2012

What’s on the Economic Horizon

German Factory Orders to Turn Positive?
Ivey PMI to Fall to 58.6 From 63.5
RBA Expected to Reduce the Cash Rate by 25 Basis Points

U.S. Dollar (USD)

Is this a return to fundamentals we’re seeing? Thanks to the better-than-expected non-farm employment change, the Greenback was able to stay afloat versus other major currencies. The U.S. dollar index ended the U.S. trading session where it started, forming a doji-type candlestick. Read more…

Euro (EUR)

With risk appetite dominating the markets, who needs to watch the Super Bowl to see some action? Okay, maybe it’s not as exciting as watching The Big Game, but the euro managed to lock in some pips thanks to a positive jobs report in the U.S. EUR/USD traded on a 100-pip range before ending the day at its open price, but EUR/JPY rose by 47 pips to 100.34. Read more…

British Pound (GBP)

GBP/USD bounced up and down the 1.5800 handle last Friday like a seesaw. But after the pair plunged to its intraday low of 1.5750, the pound started to pare its losses and ended the day 15 pips above its opening price at 1.5817. Read more…

Japanese Yen (JPY)

The yen suffered across the board yesterday as traders unwound their carry traders on better-than-expected U.S. data. USD/JPY and EUR/JPY both rose on Friday, respectively gaining 33 pips and 47 pips. Read more…

Canadian Dollar (CAD)

Never mind poor economic data – risk appetite is here to stay! Thanks to a strong NFP report, USD/CAD blasted below its .9950 support and ended the day with a 60-pip drop at .9936. Boo yah! Read more…

Australian Dollar (AUD)

Friday was definitely a good day for the Aussie as it managed to steal some pips from the safe haven Greenback. AUD/USD closed the day at 1.0706, 9 pips higher from its opening price. Then, earlier today, AUD/USD rallied again despite a weaker-than-expected retail sales report. Read more…

New Zealand Dollar (NZD)

Thanks to the pick up in risk appetite, the Kiwi was able to rally to its 21-week high against the dollar on Friday. NZD/USD consolidated below where it opened for the most part of the day but traded higher during the New York session. By the day’s close, the pair had settled 28 pips above its opening price at .8361. Read more…

Swiss Franc (CHF)

What a buzzkill! Unlike the other major currencies, the Swiss franc was unable to rally against the dollar in Friday’s trading. USD/CHF traded higher and ended the day at .9184, up from its opening price of .9168. Read more…

Batman and Robin, 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!