Daily Forex Fundamentals – June 23, 2011

What’s on the Economic Horizon

Initial Jobless Claims Predicted to be at 414K

Euro zone PMI reports on Deck

U.S. Dollar (USD)

Dollar domination! Thanks to the slightly upbeat FOMC’s statement, the dollar was able to stage a magnificent rally versus all other major currencies yesterday. The U.S. dollar index, which tracks the performance of the dollar versus a basket of currencies, rose to 75.30 from 75.03. Read more…

Euro (EUR)

No thanks to U.S. Fed Chairman Bernanke’s speech and weak economic data, the euro tumbled against its major pip buddies yesterday. EUR/USD ended the day 48 pips lower at 1.4357, while EUR/JPY slipped by 19 pips to 115.29. Read more…

British Pound (GBP)

Double whammy for the pound! Dovish BOE monetary policy meeting minutes combined with a relatively upbeat statement from the Federal Reserve pushed GBP/USD to a low of 1.6060 yesterday. GBP/JPY wasn’t spared as it fell almost 120 pips from its 130.24 open price. Read more…

Japanese Yen (JPY)

After two straight days of trading between the 80.00-80.35 range, the yen bears finally decided to show some strength! Upon the release of the FOMC statement, USD/JPY exploded out of its range and rallied to new weekly highs. It is currently trading at 80.53, a decent 40 pips higher from its week open price. Read more…

Canadian Dollar (CAD)

And it ends with a truce! Well, not really. No economic report was released from Canada yesterday, but dollar strength across the board took its toll on the Loonie. After dropping to its one-week low at .9701, USD/CAD ended the day 6 pips higher at .9731. Read more…

Australian Dollar (AUD)

Similar to other major currencies, the Aussie found itself on the back foot against the dollar yesterday due to a more upbeat FOMC statement. AUD/USD ended the U.S. trading session 1.0572, a good 79 pips lower from its intraday high. Read more…

New Zealand Dollar (NZD)

The Kiwi was off to a strong start as NZD/USD rallied above the .8150 mark during the Asian session. However, the pair was forced to retreat when the U.S. FOMC statement was released. NZD/USD closed at .8145, just 27 pips above its .8118 open price. Will the Kiwi be able to take flight today? Read more…

Swiss Franc (CHF)

Just when USD/CHF seemed ready to break below .8350, relatively upbeat words from the Fed triggered U.S. dollar buying. Because of that, USD/CHF retreated and closed at .8391. The Swiss franc’s performance against the euro was much better as EUR/CHF closed 58 pips below its 1.2105 open price. Where to now, Swissy? Read more…

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