Daily Forex Fundamentals – January 16, 2012

What’s on the Economic Horizon

ECB President Mario Draghi to speak at 6:00 pm GMT
Australia’s job ads slip by 0.9%
Swiss PPI seen at -0.3%

U.S. Dollar (USD)

Dollar bulls attaaaaack! Thanks to growth concerns in the euro zone and a positive report from the U.S., traders bought the Greenback like it was a new Apple product. EUR/USD plummeted by a whopping 143 pips to 1.2684, while USD/CHF rose by 84 pips to .9522. HA-OOH! HA-OOH! Read more…

Euro (EUR)

Surprise, surprise! The euro zone got slapped with another debt rating downgrade and this time it was on FIVE member nations. This was enough to force both EUR/USD and EUR/JPY to gap down over the weekend, but will these pairs continue to slide down today? Read more…

British Pound (GBP)

Negative developments from Europe and other parts of the globe tempered risk taking again last Friday. Apparently, the Italian bond auction had weak demand and JP Morgan, a huge financial company, reported weaker-than-expected earnings. Cable, as a result, closed the day at 1.5323, 20 pips lower fromm its opening price that day. Read more…

Japanese Yen (JPY)

True to its reputation as a safe haven, the yen gained against its high-yielding counterparts last Friday. No reports were released from the Japan, but EUR/JPY ended up falling by 88 pips to 97.61, while GBP/JPY dropped to an intraday low of 117.30 before capping the day at 117.92. Read more…

Canadian Dollar (CAD)

Risk aversion strikes back! After a couple of days of staying below the 1.0200 handle, USD/CAD surged to a high of 1.0284 on Friday as higher-yielding currencies lost their ground. With the pair gapping higher over the weekend, could this mean that risk-taking would remain in check for the coming days? Read more…

Australian Dollar (AUD)

Like most of its comdoll buddies, the Aussie rolled in the deep, the chart deeps last Friday. Risk aversion across the board dragged AUD/USD to an intraday low of 1.0232 before it leveled off to a close only 35 pips down from its open price. Read more…

New Zealand Dollar (NZD)

The Kiwi edged lower last Friday, no thanks to the market’s aversion to risk. Euro zone’s debt problems were the primary cause of the sour sentiment again, as the Italian debt auction performed below expectations. NZD/USD ended the day 18 pips lower from its opening price. Read more…

Swiss Franc (CHF)

The Swissy found itself trading in a mixed manner last Friday. While it gained over the euro due to euro zone’s debt crisis, it was unable to do the same versus the safe haven Greenback. EUR/CHF was 28 pips lower by the end of the U.S. trading session while USD/CHF marked an 84-pip gain. 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!