Daily Forex Fundamentals – January 4, 2012

What’s on the Economic Horizon
Fed to Start Publishing Interest Rate Forecasts
German Unemployment Report Help Spark Risk Appetite
U.K. Construction PMI Seen at 52.3

U.S. Dollar (USD)

Aha! It looks like currency bulls tried to put their Usher on but they just couldn’t ignore positive data and let them burn. Risk appetite caused the demise of the dollar on the charts yesterday which consequently scored losses against all of its major counterparts. Read more…

Euro (EUR)

Risk is ON, baby! Positive stats from the euro zone and the U.S. helped trigger a round of risk taking that saw EUR/USD rally 127 pips to end at 1.3054. Will the euro chalk up its second win of the year today? Read more…

British Pound (GBP)

In the first real day of trading, the pound benefitted from the wave of risk appetite that swept the markets and busted a cap against the dollar and yen. GBP/USD rose 146 pips to close at 1.5648, while GBP/JPY finished at 119.94, up 75 pips from its opening price. Read more…

Japanese Yen (JPY)

Not so fast! After speeding up on the charts recently, it seems like the yen finally ran out of fuel yesterday. EUR/JPY rallied from its opening price of 99.40 to close the day at 100.07, while GBP/JPY closed with a 75-pip win at 119.94. Read more…

Canadian Dollar (CAD)

Guess who’s 2-0 for 2012! That’s right, the Loonie! For the the second straight day, the Canadian currency posted gains against its American counterpart as a round of risk taking boosted the comdoll. This saw USD/CAD post its biggest daily slide since November of last year as it fell from 1.0194 to 1.0110. Read more…

Australian Dollar (AUD)

Whoa! The Aussie just skyrocketed up the charts like a Justin Bieber song! Yesterday, AUD/USD rallied from its opening price of 1.0231 and closed at 1.0372. Meanwhile, AUD/JPY ended the day with an 85-pip win at 79.51. Read more…

New Zealand Dollar (NZD)

Fly Kiwi, fly! With an upswing of risk appetite in the air, the Kiwi soared up the charts yesterday, posting a 116-pip gain versus the dollar. This marked the 3rd consecutive day that NZD/USD has finished higher. Will we see a retracement soon? Read more…

Swiss Franc (CHF)

Taking advantage of the greenback’s weakness, the Swiss franc sliced and diced its way to a victory yesterday, as USD/CHF dropped 82 pips from its opening price to finish at .9321. 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!