Daily Forex Fundamentals – January 4, 2013

What’s on the Economic Horizon

U.S. Non-Farm Payrolls to Set Today’s Trading Tone
Euro zone Inflation Rate to Fall to 2.1% from 2.2%
Canadian Employment Situation Expected to Have Gotten Worse in December

U.S. Dollar (USD)

The safe haven Greenback dominated the foreign exchange market yesterday due to the combination of strong economic data and the weak appetite for risk. The U.S. dollar index ended the day at 80.85, notably higher from its Asian session opening level at 80.31. Read more…

Euro (EUR)

Yowza! The euro extended its losing streak against the dollar as EUR/USD closed below the 1.3100 handle yesterday. EUR/JPY had its share of losses as it found resistance at 115.00 and ended the day at 113.86. What triggered this euro selloff? Read more…

British Pound (GBP)

The pound sterling didn’t live up to its name in yesterday’s trading as it failed to shine bright like a diamond on the charts. GBP/USD chalked up a 138-pip loss when it finished at 1.6108 while GBP/JPY ended the day lower at 140.40 after opening at 141.53. Read more…

Japanese Yen (JPY)

Why thank you, risk aversion! Yesterday’s dour market sentiment proved to be a boon for the yen as it was able to gain against most major currencies. EUR/JPY, the forex market’s “barometer of risk,” fell to 113.86 from 114.79. Read more…

Canadian Dollar (CAD)

The Loonie sure loves to stay in a range, doesn’t it? USD/CAD moved sideways above the .9850 minor psychological level during yesterday’s trading then rallied towards the end of the U.S. session and closed at .9872. Read more…

Australian Dollar (AUD)

As the popular adage goes, “You win some, you lose some.” Unfortunately, the Australian dollar experienced the latter yesterday as it gave up a bit of ground to the safe haven U.S. dollar. AUD/USD, which began the day at 1.0488, closed the U.S. trading session at 1.0477. Read more…

New Zealand Dollar (NZD)

Just when the Kiwi was starting to take flight, the bears jumped in on it! NZD/USD was already testing resistance at the .8350 minor psychological handle before it started to trade lower. By the end of the New York session, NZD/USD was down 19 pips from its opening price at .8286. Read more…

Swiss Franc (CHF)

Alas! The franc spent another day in the bear lair. USD/CHF continued to trade higher yesterday. It opened at .9186 and finished the day at .9261. 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!