Daily Forex Fundamentals – July 9, 2012

What’s on the Economic Horizon

U.S. Weaker-Than-Expected NFP Results in Risk Aversion
ECB President Draghi Scheduled to Speak Today
Australian Labor Data Due This Week

U.S. Dollar (USD)

Thank you bad data! The U.S. dollar once again benefited from safe haven flows as the non-farm payrolls failed to meet market expectations last Friday. The U.S. dollar index, which tracks the currencies performance versus a basket of other major currencies, was able to mark a new monthly high at 83.91. Read more…

Euro (EUR)

BOOM! The euro took triple roundhouse kicks against its counterparts last Friday after risk aversion and weak economic data dragged on high-yielding currencies. EUR/USD took a 107-pip hit, while EUR/JPY also dropped by 117 pips. What had gotten the euro bears so excited? Read more…

British Pound (GBP)

There was certainly no partying for the pound bulls last Friday. GBP/USD closed the day 37 pips lower at 1.5487 while GBP/JPY was down 70 pips at 123.30. It wasn’t all bad though! Against the euro, the pound rallied to its 44-month high at .7925 before closing the day with a 49-pip win at .7931. Read more…

Japanese Yen (JPY)

When risk aversion dominates the market, we all know which currency stands out! The low-yielding Japanese yen smashed its Western counterparts yesterday as the non-farm payrolls failed to meet expectations. The yen gained 117 pips over the euro and 71 pips versus the pound. Read more…

Canadian Dollar (CAD)

The Loonie got real comfortable in the comdoll bandwagon last Friday as risk aversion dominated price action. USD/CAD shot up by 43 pips after hitting an intraday high of 1.0208! Does this mean that Canada’s economic reports didn’t factor in the move last Friday? Read more…

Australian Dollar (AUD)

Last Friday, market sentiment soured due to the skepticism surrounding the euro zone situation and a very disappointing U.S. non-farm payrolls. AUD/USD closed the day at 1.0220, 69 pips lower from its opening price. Read more…

New Zealand Dollar (NZD)

Down the Kiwi goes! NZD/USD finally broke down below support at .8000 as risk aversion spooked investors out of higher-yielding assets. By the end of Friday’s New York session, the pair settled 55 pips below its opening price at .7982. Read more…

Swiss Franc (CHF)

The Swiss franc just hit a new low, low, low, low! On Friday, the currency tapped its 19-month low against the dollar at .9794 before closing the day with an 83-pip loss at .9779. Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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