Daily Forex Fundamentals – January 2, 2012

What’s on the Economic Horizon
Euro zone final manufacturing PMI due today
Major economies still on bank holiday

U.S. Dollar (USD)

Will the Greenback be able to party like it’s 2012? It seems like it spent the last few days of 2011 losing ground to most of its major counterparts, except for the euro. EUR/USD ended the year below the 1.3000 handle while the rest of the higher-yielding currencies enjoyed the Santa Claus rally. Read more…

Euro (EUR)

The euro ended 2011 on a low note as it was sold off sharply in the last days of the year. EUR/USD ended 2011 below the 1.3000 handle, just pips away from the year’s lows. So will the euro’s woes carry over into 2012, or will we see it come back from the dead? Read more…

British Pound (GBP)

Even with the flurry of traders off on holiday, we saw some wild moves on Cable last week. After opening just below the 1.5600 handle, GBP/USD dropped all the way down to 1.5362 before boogieing its way back up to 1.5532 to end the week. Read more…

Japanese Yen (JPY)

Way to go, yen! The Japanese currency spent the last few days of 2011 rallying against most of its major counterparts, save for the Australian dollar. AUD/JPY climbed near the 79.00 handle while EUR/JPY and GBP/JPY both reached new lows. Is the yen in for more gains this week? Read more…

Canadian Dollar (CAD)

Though risk aversion threatened the Loonie in the last days of the year, the comdoll was pretty much able to maintain its footing against the Greenback. USD/CAD consolidated after experiencing wild swings, eventually ending the year just below the 1.0200 handle. Read more…

Australian Dollar (AUD)

Talk about ending the year with a bang! The Aussie rocketed up the charts before the year came to a close as AUD/USD reached the 1.0250 mark while AUD/JPY climbed towards the 79.00 handle. Will these pairs be able to hold on to its recent gains? Read more…

New Zealand Dollar (NZD)

Despite the wave of risk aversion that swept the markets, Kiwi trading remained steady throughout the holiday week. In fact, after initially dropping to as low as .7653, NZD/USD went on a late rally and finished at .7784, marking a 49-win victory for the week. Read more…

Swiss Franc (CHF)

Aside from a mid-week spike, we didn’t see much action on the Swissy last week. By the end of the week, USD/CHF was at .9394, up just 22 pips from its weekly 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!