Daily Forex Fundamentals – July 28, 2011

What’s on the Economic Horizon

Weekly Jobless Claims and Pending Home Sales on Tap
Will the German Jobs report Boost the euro?
Japanese CPI, Household Spending Coming Up
New Zealand Building Consents Data on Deck

U.S. Dollar (USD)

It seems like risk aversion is the only thing that can save the dollar nowadays! With the markets getting a little jittery, the dollar was able to post small gains in yesterdays trading. The scrilla ticked higher against its major counterparts, but with legislators nowhere closer to a new debt ceiling deal, could the dollar be prone to weakness the rest of the week? Read more…

Euro (EUR)

Geronimoooo! The euro plunged in the charts yesterday as risk aversion swept the markets and sent higher-yielding currencies lower. EUR/USD closed 141 pips lower at 1.4374 while EUR/JPY ended the day down to 112.11 from its opening price of 113.09. Read more…

British Pound (GBP)

Just when you thought it’d be clear skies ahead for the pound, out come pound bears to drag the currency down! With weak U.K. data and dovish BOE statements working for them, they pulled GBP/USD 76 pips lower. Is this a reversal in the works? Read more…

Japanese Yen (JPY)

With risk aversion taking over the markets, the yen reigned supreme in yesterday’s pip wrestling matches. USD/JPY continued to trickle down the charts, hitting a new low at 77.56 before closing at 78.00. Meanwhile, EUR/JPY dropped nearly 100 pips before finishing at 112.11. Read more…

Canadian Dollar (CAD)

Boo! Risk aversion reared its ugly head back into the markets yesterday and scared investors out of higher-yielding currencies such as the Loonie. USD/CAD ended the day 60 pips higher at .9489 after it failed to trade below support at .9430. Read more…

Australian Dollar (AUD)

King of the Hill baby! On the strength of strong CPI figures, the Australian dollar soared higher yesterday despite the run of risk aversion that weighed down other higher yielding currencies. The Aussie set a new all-time high at 1.1081 before settling at 1.1019, marking a 58 pip gain for the day. Read more…

New Zealand Dollar (NZD)

A good start, but a poor finish was what we got from the Kiwi yesterday! A strong reading from the NBNZ business confidence lifted it up in the Tokyo session, but NZD/USD eventually gave up all of its gains late in the New York session. What can we expect today? Read more…

Swiss Franc (CHF)

Mixed results for the Swissy as sellers pulled it this way and buyers pulled it that way. While traders bought it up against the euro, they weren’t as eager to do the same against the dollar… at least not with USD/CHF facing strong support at 0.8000! 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!