Daily Forex Fundamentals – January 18, 2012

What’s on the Economic Horizon

U.S. Producer Price Index Expected to Show a Minute 0.1% Gain
Jobless Claims in the U.K. Predicted to Have Risen by 9,100
Australian Labor Data on Deck

U.S. Dollar (USD)

The Greenback generally found itself weaker yesterday as a slight case of risk appetite hit the markets. The U.S. dollar index that tracks the overall performance of the currency against other major currencies fell to 81.61 from its opening level during the Asian trading session. Read more…

Euro (EUR)

Make way for the currency hotshot! Despite continued onslaught of credit rating downgrades in the euro zone, the euro still managed to clobber its major counterparts yesterday. EUR/USD even tipped an intraday high at 1.2809 before it closed 67 pips higher than its open price, while EUR/GBP also staged a nice recovery with a 40-pip gain. Read more…

British Pound (GBP)

The pound ended the day slightly higher than both the Greenback and the yen, as GBP/USD closed 9 pips up from its 1.5323 open price while GBP/JPY landed 13 pips up from its 117.66 open. Let’s take a look at the factors that boosted these pairs yesterday. Read more…

Japanese Yen (JPY)

The yen moved in two major waves yesterday. The currency rallied strongly during the Asian session, but suddenly fell when risk appetite hit the markets during the European and U.S. trading session. USD/JPY, for instance, opened 76.78, fell to 76.55, then ended the day at 76.83. Read more…

Canadian Dollar (CAD)

There were plenty of good vibes among the Loonie bulls yesterday as better-than-expected reports from Canada fueled appetite for the Canadian dollar. USD/CAD fell for the second day in a row, this time sliding by another 32 pips to 1.5566. Read more…

Australian Dollar (AUD)

Thanks to improved risk sentiment, the Aussie was able to post its second straight win versus the Greenback yesterday! After opening the Asian trading session at 1.0309, AUD/USD managed rally during the day to end the U.S. trading session with a 59-pip gain. Read more…

New Zealand Dollar (NZD)

Way to go, Kiwi! NZD/USD had another winning day as it reached a high of .8010 and closed at .7992. Is the Kiwi headed for more gains today? Read more…

Swiss Franc (CHF)

Thanks to the improvement in risk appetite, the Swiss franc was able to end the day higher against the Greenback as USD/CHF closed at .9502. On the other hand, it lost a bit of ground against the euro as EUR/CHF stayed in consolidation but closed 9 pips up from its 1.2088 open price. 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!