Daily Forex Fundamentals – July 21, 2011

What’s on the Economic Horizon
European economic summit today
U.K. retail sales set to print 0.5% rise
U.S. Philly Fed manufacturing index to jump to 2.7?

U.S. Dollar (USD)

Risk appetite be killin’ the dollar yo! The American currency dropped amid weak existing home sales data and debt ceiling talks, posting losses against ALL of its major counterparts. Is it doomed to do the same today? Read more…

Euro (EUR)

And the euro zone debt saga continues! Expectations for a successful euro zone leaders’ meeting today gave the euro a lift yesterday, boosting EUR/USD 81 pips to 1.4226. Never mind that economic reports were also released from the region! Will we see another rally today? Read more…

British Pound (GBP)

“I get knocked down, but I get up again,” sang the pound as it had Tubthumping price action yesterday. GBP/USD dipped to a low of 1.6069, but managed to close 35 pips above its 1.6125 open price. GBP/JPY, on the other hand, struggled to stay above the 127.00 handle and managed to close at 127.28. Will the pound go on to sing “You’re never gonna keep me down” today? Read more…

Japanese Yen (JPY)

Hey hey hey! Don’t count the yen out just yet! After taking a hit on Tuesday, the Japanese currency was able to bounce back and post gains across the board. Against the dollar, it rose 54 pips, forcing USD/JPY to test its one-week old support level. Read more…

Canadian Dollar (CAD)

Back-to-back, baby! The Loonie powered on for the second day in a row yesterday when Canada’s positive economic reports jived with a surge of risk appetite in markets. USD/CAD even dropped to an intraday low of .9457 before settling with a 34-pip drop at .9474. Read more…

Australian Dollar (AUD)

A decline in leading indicators? Ain’t no thang to the Aussie, baby! In spite of a soft MI leading index reading, the Aussie was able to stage a decent rally against the dollar as AUD/USD climbed to the top of the range on its 4-hour chart. Is it all downhill from here?
Read more…

New Zealand Dollar (NZD)

Another new record for the Kiwi! NZD/USD reached a new record high at .8589 yesterday as the pair got a boost from risk appetite. How much higher can the Kiwi go? Read more…

Swiss Franc (CHF)

Mixed day for the Swissy yesterday as it managed to end higher than the U.S. dollar but held steady against the euro. USD/CHF landed at .8198, 51 pips below its .8249 open price, while EUR/CHF snapped back to its 1.1665 open. 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!