Daily Forex Fundamentals – January 17, 2012

What’s on the Economic Horizon
BOE Governor King set to testify today
German ZEW economic sentiment to improve in Jan
BOC to keep rates on hold at 1.00%

U.S. Dollar (USD)

Consolidation was the name of the game yesterday as most dollar pairs, except for AUD/USD and USD/CAD moved sideways. EUR/USD hovered below the 1.2700 handle while GBP/USD kept its head above 1.5300. Will these pairs find a clearer direction today? Read more…

Euro (EUR)

The euro started the week on a very quiet note as it simply moved sideways against other major currencies. EUR/USD traded within a across the board yesterday. It traded within a very tight 23-pip ranged while EUR/JPY bounced around a 42-pip box. Read more…

British Pound (GBP)

“Roses are red, violets are blue. There were no reports from the U.K., so I don’t have a clue.” With the U.K. not releasing any economic reports yesterday, traders might have stayed on the sidelines and waited for the big reports scheduled for release today. Cable might have risen by 41 pips to 1.5323, but GBP/JPY barely moved from its open price, which is what happened to most of the pound pairs. Read more…

Japanese Yen (JPY)

Thanks to ongoing risk aversion and the absence of U.S. traders, the Japanese yen was the king of the safe-haven hill yesterday as all yen pairs edged lower. EUR/JPY even reached a new low of 97.03 as a result of the recent debt rating downgrades. What’s in store for the yen today? Read more…

Canadian Dollar (CAD)

Thanks to rising commodity prices, the Loonie managed to get on the winning side of the fence yesterday as it marked 63-pip gain over the Greenback. USD/CAD sat at 1.0180 by the end of the U.S. trading session. Read more…

Australian Dollar (AUD)

The Australian dollar ended higher against the U.S. dollar yesterday as it got a boost from better than expected economic data. AUD/USD opened at 1.0291, reached a high of 1.0338, then closed at 1.0309. Read more…

New Zealand Dollar (NZD)

You gotta give it to the Kiwi bulls, they know how to play tug-o-pips! Despite a poor economic data from New Zealand and weak news reports that could’ve taken its toll on risk appetite, NZD/USD remained strong with a 19-pip gain to .7939. Read more…

Swiss Franc (CHF)

Thanks to a low-liquidity trading day for the markets, the low-franc ended the day with mixed results against its major counterparts. EUR/CHF held steady with a 16-pip rise to 1.2088, but USD/CHF slipped by 11 pips to .9545. 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!