Daily Forex Fundamentals – January 20, 2012

What’s on the Economic Horizon

U.K. retail sales expected to rise
Canadian CPI on tap
U.S. existing home sales to improve to 4.65M

U.S. Dollar (USD)

Dollar bears were beastin’ on the charts yesterday, causing the dollar to give ground and submit to its higher-yielding counterparts. That makes it 4 out of 4 for the bears this week! Will they complete the sweep today? Read more…

Euro (EUR)

Well whadya know… the euro managed to post another winning day, all thanks to very successful bond auctions in Spain and France. This caused borrowing costs to fall, which gave the market a reason to be positive. EUR/USD ended the U.S. trading session at 1.2967, 107 pips higher from its opening price that day. Read more…

British Pound (GBP)

With risk appetite still on a roll, the pound hammered away against the dollar and yen yesterday. GBP/USD rose another 52 pips to close at 1.5493, while GBP/JPY finished at 119.51, up 93 pips from its opening price. Boo yeah! Read more…

Japanese Yen (JPY)

The Bank of Japan must have loved yesterday’s yen price action! Why? The currency posted solid losses against its major counterparts! While USD/JPY rallied 34 pips to 77.14, EUR/JPY posted its biggest gains this week and closed 126 pips higher at 100.02. Read more…

Canadian Dollar (CAD)

Even though risk sentiment was up, the Loonie was unable to capitalize. The Loonie gained early during the day, but lost midday to end the U.S. trading session where it started. USD/CAD closed at 1.0114, just a single pip higher from its opening price. It appeared that the Loonie was severely overbought, as it had already gained greatly in the last three days. Read more…

Australian Dollar (AUD)

Oddly enough, the Aussie didn’t participate in yesterday’s risk rally. As a matter of fact, AUD/USD posted its first decline this week as it slid 12 pips to 1.0417. Blame it on weak employment data, I say! Read more…

New Zealand Dollar (NZD)

You know what they say! What goes up, must come down! The Kiwi took a hit yesterday, falling 46 pips from its opening price to finish the day at .8028. What gives? Read more…

Swiss Franc (CHF)

Ain’t no stopping the franc baby! With the risk appetite sign turned on, USD/CHF slid 81 pips to close at .9322. Will we see more of the same today? Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!