Daily Forex Fundamentals – May 1, 2012

What’s on the Economic Horizon

ISM Manufacturing PMI on Deck
Reserve Bank of Australia Expected to Cut Rates by 0.25%

U.S. Dollar (USD)

Is that a ranging market I see? Ah, why yes it is! Due to the absence of high impact economic reports, the safe haven Greenback found itself simply trading within tight horizontal channels versus other major currencies. EUR/USD, for instance, closed yesterday’s trading session at 1.3237, just 3 pips higher from its opening price that day. Read more…

Euro (EUR)

Hmmm, it looks like the euro is off to a relatively good start. After EUR/USD fell from its intraday high of 1.3268, the pair was still able to pare its losses and close the day 3 pips above its opening price at 1.3237. It might not be much, but a win is a win, right? Read more…

British Pound (GBP)

It ends at 10! After pushing Cable higher for 10 days straight, the pound bulls took a breather yesterday as GBP/USD ended the day with a 46-pip loss at 1.6230. Are we seeing a retracement or a reversal? Read more…

Japanese Yen (JPY)

“Muscles? I’ve got them!” The yen bulls showed some strength yesterday as global growth concerns weighed heavily on market sentiment. USD/JPY closed 46 pips lower while EUR/JPY ended with a 59-pip loss. Read more…

Canadian Dollar (CAD)

There’s nothing like disappointing economic growth to send currency bulls scurrying away. Just ask the Loonie! It pared its gains from Friday’s trading against the dollar as USD/CAD rallied higher yesterday. By the day’s close, the pair was up 65 pips from its opening price. Read more…

Australian Dollar (AUD)

After three consecutive days of winning, risk aversion finally took hold of the markets which pushed the Aussie lower. The currency received a huge blow and took losses against both the safe haven Greenback and the low-yielding yen. Read more…

New Zealand Dollar (NZD)

The odds weren’t in the Kiwi’s favor yesterday as the comdoll dropped against the dollar despite the release of strong reports from New Zealand. NZD/USD fell by 48 pips to .8178 after reaching an intraday high at .8236. Read more…

Swiss Franc (CHF)

Yawn! With no economic data out from Switzerland, USD/CHF and EUR/CHF stayed on their tight for most of the day. USD/CHF ended the day right at its open price at .9077, whie EUR/CHF inched 2 pips higher at 1.2015. Talk about not seeing some action! 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!