Daily Forex Fundamentals – January 5, 2012

What’s on the Economic Horizon

U.K. services PMI to slip
Big reports from the U.S. to dictate risk sentiment?
Canadian Ivey PMI on tap

U.S. Dollar (USD)

Guess who’s back in the game! The dollar yo! It followed up its big loss on Tuesday by clawing back and snatching a few pips away from its major counterparts. It managed to steal 108 pips away from the euro while gaining 8 pips against the yen. Will concerns about the euro zone debt crisis continue lifting the dollar today? Read more…

Euro (EUR)

Burn, baby, burn! The euro got burnt at the stake yesterday, as it got torched versus all its major counterparts. EUR/USD dropped 112 pips to finish at 1.2946, while EUR/JPY sank to new lows at 99.32, marking a 74-pip loss on the day. Read more…

British Pound (GBP)

Just like Katy Perry and Russell Brand’s marriage, the pound’s pips dissolved in yesterday’s trading, paring some of the gains it stacked up on Tuesday. GBP/USD ended the day lower at 1.5620 after opening at 1.5649. Read more…

Japanese Yen (JPY)

Yesterday was bittersweet for the yen as it got mixed results on the charts. While it managed to gain 74 pips against the euro, it lost 8 pips versus the dollar. Let’s see if it’ll be more consistent today! Read more…

Canadian Dollar (CAD)

With risk-taking taking a backseat yesterday, the Canadian dollar reversed some of its gains made early in the week. USD/CAD traded as high as 1.0163 before settling at 1.0123, marking just a 13-pip gain on the day. Read more…

Australian Dollar (AUD)

The Aussie finally halted its 4-day winning streak against the Greenback as concerns in Europe weighed on risk appetite. As a result, AUD/USD stalled, forming a beautiful doji on the daily chart as the pair closed just 1 pip lower at 1.0371. Could this be the start of a big reversal? Yikes! Read more…

New Zealand Dollar (NZD)

After flying high on the charts on Tuesday, the Kiwi bungee-jumped from the .7900 handle against the dollar yesterday. NZD/USD tapped a high of .7909 then traded lower to end the day 23 pips below its opening price at .7877. Read more…

Swiss Franc (CHF)

Unlike Switzerland’s world-famous chocolates, the Swiss franc didn’t really appear sweet and mouth-watering to investors yesterday. The currency lost to its major counterparts, giving up 22 pips to the euro as EUR/CHF closed at 1.2187, and 93 pips to the dollar as USD/CHF ended the day at .9414. 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!