Daily Forex Fundamentals – January 31, 2012

What’s on the Economic Horizon

German reports on the docket
Canadian GDP expected to increase by 0.2%
U.S. to publish consumer confidence data

U.S. Dollar (USD)

After weeks of trying, the dollar was finally able to bring sexy back yesterday! For the first time in weeks, the dollar was able to take away solid pips from its higher-yielding counterparts. While EUR/USD dropped an awesome 100 pips to end at 1.3130, GBP/USD fell 34 pips to 1.5702. The question is, will the dollar let these pips slip through its fingers today or will it extend its rally? Read more…

Euro (EUR)

Was that a drive-by shooting we just witnessed? With risk aversion coming back in force, the euro got killed in yesterday’s trading action. EUR/USD dropped a solid 100 pips to finish at 1.3130, while EUR/JPY closed at 100.24, down 120 pips from its opening price. Read more…

British Pound (GBP)

Just like Rafael Nadal who lost the Australian Open to my homeboy Novak Djokovic, the pound also failed to snatch a win against the dollar. GBP/USD traded lower yesterday and ended the day 34 pips below its opening price at 1.5702. Read more…

Japanese Yen (JPY)

And the Bank of Japan’s nightmares continue! The yen continued to strengthen across the boards yesterday, leading USD/JPY to fall another 32 pips and end the day at a new three-month low at 76.21. Will this finally get the central bank to step in? Read more…

Canadian Dollar (CAD)

With the dollar off to a quick start, the Loonie saw itself trading lower to begin the week. USD/CAD hit a high at 1.0071 before eventually stabilizing at 1.0028, just 18 pips above its opening price for the week. Will the bears eventually take over and push USD/CAD back below parity? Read more…

Australian Dollar (AUD)

Make no mistake about it, the Aussie didn’t bring its A-game yesterday! Rather than extending its three-day winning streak by another day, it ended up weakening against the Greenback. This led AUD/USD to fall 50 pips and end the day at 1.0595. What a combo breaker! Read more…

New Zealand Dollar (NZD)

Uh oh. It looks like the Kiwi’s flight up the charts is running out of fuel! NZD/USD opened at what turned out to be its intraday high at .8239 and dropped to a low of .8156. Before the day’s close, the pair settled at .8189. Read more…

Swiss Franc (CHF)

The Swissy’s scorecard was as mixed as a glass of margarita in yesterday’s trading. While it was able to end the day with an 11-pip win against the euro, it gave up 62 pips to the dollar when USD/CHF closed the day at .9181. 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!