Daily Forex Fundamentals – July 6, 2012

What’s on the Economic Horizon

Non-Farm Payrolls Due Today
Canadian Employment Figures on Tap
Swiss CPI Seen at -0.3%

U.S. Dollar (USD)

Looks like the fireworks came one day later! Thanks to the releases of a slew of reports yesterday, the dollar exploded higher, posting massive gains versus the euro and pound. EUR/USD dropped 147 pips before finishing at 1.2389, while GBP/USD closed 72 pips lower at 1.5524. Read more…

Euro (EUR)

What a day! In a gigantic move that saw traders sell-off the euro like there was no tomorrow, EUR/USD slipped 147 pips to close just below the 1.2400 handle. Blame it all on Draghi! Read more…

British Pound (GBP)

Time to rev up the presses – the Bank of England is about to print more moolah! With the BOE adding yet another 50 billion GBP to its stimulus efforts, the pound stood no chance against the Greenback and the yen. What the heck is the BOE up to? Read more…

Japanese Yen (JPY)

Winner, winner, teriyaki dinner! The yen bulls took full advantage of the weakness in European currencies and by the end of the day, EUR/JPY and GBP/JPY closed 112 and 50 pips lower respectively. Will the yen continue to dominate to end the week? Read more…

Canadian Dollar (CAD)

The Loonie saw its fair share of wild swings yesterday, but when all was said and done, it ended just a few pips weaker on the day. USD/CAD had dropped to as low as 1.0100, only to come rallying back up the charts to tap a high of 1.0158. However, the market soon calmed down to rest 12 pips above its opening price at 1.0143. Read more…

Australian Dollar (AUD)

Thanks to a rate cut by the PBoC, the Aussie held its own in yesterday’s wild action in the forex markets. AUD/USD stayed afloat and managed to edge 12 pips higher to finish at 1.0289. After four straight days of consolidation, is AUD/USD prime for a breakout? Read more…

New Zealand Dollar (NZD)

With no economic data out from New Zealand, NZD/USD reacted mostly from the central bank drama all over the markets yesterday. After tipping an intraday high at .8076 and intraday low at .80006, the Kiwi traders settled with a 2-pip slip for the day. Read more…

Swiss Franc (CHF)

Like many other currencies, the franc played puppet to risk appetite yesterday. Interest rate cuts and additional stimulus was the name of the game yesterday, which pushed USD/CHF all the way to .9696 by the end of the day. 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!

  • Deepak

    As US NON FARM PAYROLL data came up with mixed response with NFP
    at 80000k below expectation of 90000k however unemployment
    rate stick to 8.2%, Avg. hourly earnings increases by 0.3% and wages at 34.5 that are more than expectation of 0.2%
    and 34.4 respectively. However this mixed response reacted the market with
    GBP/USD, EURO/USD, AUD/USD saw dragging of around 50-70 pips however US/JPY
    showed positive movement in favor of JPY as JPY strengthen by
    25 pips.  


    What is the major reason of strengthening of JPY against
    USD though other USD pair currency becomes weaker? Is there any fundamental
    reason behind it?

  • JJ6845616

    Hi Deepak During the times of risk aversion,the safe heaven currencies like USD and JPY usually gains.After all the efforts made by the Bank of Japan to remove the safe heaven appeal of the japanese yen,the traders still love the japanese yen in the times of crisis.We got a very bad NFP data so actually i will not buy USD (would u?) either i would love to buy that safe heaven JPY like other investors.