Daily Forex Fundamentals – June 21, 2012

What’s on the Economic Horizon
Fed decides to extend Operation Twist, no QE3
Chinese flash manufacturing PMI on tap
U.K. retail sales to rebound in May?

U.S. Dollar (USD)

Extra, extra! Read all about it! The Fed does the Twist again! Instead of implementing QE3 as many expected, the FOMC simply decided to extend Operation Twist until the end of 2012. It seems like the Greenback didn’t know how to take this news as it was all over the place after the announcement. Will it find a clearer direction today? Read more…

Euro (EUR)

Surprisingly enough, even with yesterday’s major market events, EUR/USD remained range-bound and merely traded sideways. The pair swung wildly in the hours surrounding the FOMC statement, but it eventually settled at 1.2683, just 2 pips below its opening price. Read more…

British Pound (GBP)

Look who joined the dove camp! Yesterday the MPC shocked the markets when it printed a ridiculously close 5-4 vote on additional stimulus. And get this – BOE head honcho Mervyn King is officially on the dove camp! So how did the news affect the pound? Read more…

Japanese Yen (JPY)

It’s a knock-out, folks! After yesterday’s round of risk appetite, the Japanese was unable to get back on its feet as its major counterparts threw in punch after punch. USD/JPY closed 5 pips shy of the 79.00 handle while EUR/JPY ended the day at 100.80. Read more…

Canadian Dollar (CAD)

The Loonie had a tough day on the charts yesterday as falling oil prices and a disappointing FOMC statement kept it from forging a new high against the Greenback. After a bit of choppy trading in the London and New York sessions, USD/CAD ended the day at 1.0193, up 11 pips on the day. Read more…

Australian Dollar (AUD)

The waves were extra choppy on the Aussie front yesterday as AUD/USD bobbed up and down during the FOMC statement. At the end of the day, the Aussie got wiped out by the Greenback’s strength, pushing AUD/USD to close at 1.0175. Read more…

New Zealand Dollar (NZD)

The Kiwi was the biggest loser among the comdoll gang as New Zealand printed a weak current account report. NZD/USD slipped by 39 pips after hitting an intraday low at .7916. So what exactly dragged the Kiwi? Read more…

Swiss Franc (CHF)

With only the ZEW report out from Switzerland, USD/CHF traded on dollar appetite for most of the day. The pair hit an intraday low at .9424 at the release of the FOMC minutes, but it soon capped the day near the .9450 handle. Read more…

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