Daily Forex Fundamentals – May 12, 2011

What’s on the Economic Horizon

U.S. Retail Sales and PPI to Show Downside Surprise?

U.K. Manufacturing Production Rebound in Sight

Euro Zone Industrial Production Report Due

U.S. Dollar (USD)

The Greenback was off to a rocky start but was able to get its act together later on as risk aversion popped its head back in the markets. It ended the day higher against all its major counterparts after USDX landed above the 75.50 mark. Continue reading to find out whether risk aversion could linger and keep the Greenback afloat today. Read more…

Euro (EUR)

WHERE IS THE LOVE? The euro found itself singin’ to the Black Eyed Peas’ hit single as it took a nasty nosedive yesterday. Strikes in Greece and Portuguese bank problems had traders hatin’ on the shared currency, forcing EUR/USD to plunge by 197 pips and EUR/JPY to fall by 131 pips. Read more…

British Pound (GBP)

As my momma always said, things can always change on a dime… and that’s exactly what happened on Cable yesterday! After zooming higher following the inflation reports, GBP/USD found tough resistance at the 1.6500 before nose diving all the way back down. By the end of the day, the pair closed at 1.6348, 10 pips below its closing price and 170 pips off its highs of the day. Read more…

Japanese Yen (JPY)

That’s three out of four for the Japanese yen! Thanks to the return of risk aversion yesterday, the yen was able to end higher against the euro, pound, and Aussie. Its only loss was against the Greenback, as USD/JPY opened at 80.83 and closed 3 pips above the 81.00 handle. Can JPY score four out of four today or will it erase its recent wins? Read more…

Canadian Dollar (CAD)

KAPOW! And just like that, Loonie bears are back in the game! The Loonie erased much of its gains from earlier this week despite posting growth in exports and imports. Without support from oil, USD/CAD lifted off, rising from its intraday low of .9514 to end the day 34 pips higher at .9611. Read more…

Australian Dollar (AUD)

Can you guess what song was on loop in the Aussie’s playlist? I’m willing to bet it’s Adele’s “Rolling in the Deep” because that’s exactly how the Aussie moved yesterday! AUD/USD fell short of the 1.0900 handle then tumbled by more than 200 pips to a low of 1.0664 while AUD/JPY found resistance at 88.00 and closed at 86.38. Find out what caused the Aussie’s sharp drop. Read more…

New Zealand Dollar (NZD)

Yeouch! With risk aversion spurring on the safe havens, the Kiwi found itself flat on the ground. NZD/USD dropped 61 pips to finish the day at .7886. Will today be any different? Read more…

Swiss Franc (CHF)

What the heck? Not even the mighty Swissy could benefit from yesterday’s risk aversion run? USD/CHF closed the day higher at .8871, up 63 pips from its opening price. What gives? Read more…

1 comment

  1. Paddy B

    As always, an easy to understand but thorough covering of the fundamentals! I am finally starting to ‘get’ how things are all connected! I still think that one more run over the fundamentals chapters in the School of Pipsology would do me good.

    Reply

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