Daily Forex Fundamentals – February 7, 2012

What’s on the Economic Horizon

RBA expected to cut rates by 25 basis points
Big Ben to testify in front of Federal Budget Committee in Washington
Will Canada’s building permits show a 0.2% growth in December?

U.S. Dollar (USD)

Did the traders go off on a Super Bowl holiday or something? Thanks to the lack of economic report from the U.S., the dollar barely moved against its counterparts yesterday. EUR/USD dropped to an intraday low of 1.3028 on concerns about Greece, but it soon ended the day 11 pips higher than its open price. Read more…

Euro (EUR)

Boy, does the euro know how to stage a comeback! The currency traded lower for the most part of the day with EUR/USD tumbling to its intraday low of 1.3028 after opening at 1.3120. However, the euro started to rally during the New York session and closed the day with an 11-pip gain at 1.3131. Read more…

British Pound (GBP)

Cable traded in an almost perfect “V” pattern yesterday as it moved in two distinct waves. During the Asian and morning European trading sessions, the pair experienced a sharp fall due to the sour market sentiment. But thankfully, optimism picked up during the U.S. trading session, which helped Cable regain its losses. By the end of the day, Cable sat at 1.5830, 12 pips higher than its opening price. Read more…

Japanese Yen (JPY)

Looks like there won’t be a currency intervention today! Thanks to a recovery in risk appetite and a lack of economic reports from Japan, the yen was able to steady its price action against its major counterparts. EUR/JPY capped the day 8 pips higher than its open price, while USD/JPY closed as a doji on the daily chart. Read more…

Canadian Dollar (CAD)

Cheer up, Loonie bulls! Yesterday was just one of those days when you still lose despite positive data. The Loonie ended Monday’s trading with a 3-pip loss against the dollar as USD/CAD closed higher at .9955. Read more…

Australian Dollar (AUD)

Hang in there, brothas! Despite a strong ANZ job ads report, the Aussie pared back some of its gains against the dollar yesterday. AUD/USD even reached an intraday low of 1.0684 before it capped the day 18 pips lower than its open price. Read more…

New Zealand Dollar (NZD)

Because of the bank holiday in New Zealand, NZD/USD price action was pretty much dead. The pair opened the Asian trading session at .8348, moved in very tight 60-pip range, and ended the day barely changed at .8341. Read more…

Swiss Franc (CHF)

USD/CHF see-sawed on the charts yesterday as sentiment in the euro zone waxed and waned. At first, the pair rose up due to the uncertainty surrounding the Greek bond swap deal. But once the U.S. trading session began, the market suddenly became more optimistic and sold the safe haven dollar. At the end of the day, USD/CHF traded at .9191, 4 pips lower from its opening price. 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!