Daily Forex Fundamentals – May 16, 2012

What’s on the Economic Horizon

U.S. Building Permits and Housing Starts on Deck
Euro zone Inflation Expected to Remain at 2.6%
Bank of England Governor King to Speak Today

U.S. Dollar (USD)

Geronimo! EUR/USD fell off a cliff yesterday as the potential “Grexit” and bank run continued to weigh heavily on the foreign exchange market. The pair closed the day at 1.2836, 72 pips lower from its opening price during the Asian trading session. Read more…

Euro (EUR)

So much for making a comeback! After hitting an intraday high at 1.2871, EUR/USD came crashing down to finish at 1.2729, down 106 pips from its opening price. What rocked the euro’s socks this time around? Read more…

British Pound (GBP)

Uh-oh! I feel like I jinxed the pound by calling out its resilience against the dollar in Monday’s trading. Yesterday, GBP/USD plunged like J. Lo’s neckline after tapping its intraday high at 1.6115. It closed the day at 1.5997, 99 pips below its opening price. Read more…

Japanese Yen (JPY)

The yen experienced both success and failure yesterday as it traded in a mixed manner against other major currencies. Against the Greenback, the yen was sold-off, but versus higher-yielding currencies like the euro and the pound, the yen dominated. It looks like the yen is still in second place when talking about safe haven currencies! Read more…

Canadian Dollar (CAD)

With the lack of releases from Canada, USD/CAD trading took its cues from the Greenback and unfortunately for the Loonie, this meant another day of losses. After opening at 1.0029, USD/CAD trickled higher and finished at 1.0068, marking a 29-pip gain. Read more…

Australian Dollar (AUD)

AUD/USD continued to sink yesterday as risk aversion remained strong. The possibility of Greece exiting the euro zone, and the resulting bank run, spooked investors and led them to seek the safety of the Greenback. AUD/USD closed the day at .9929, 35 pips lower from its opening price during the Asian session. Read more…

New Zealand Dollar (NZD)

Boy, Kiwi bears are on a roll, huh? NZD/USD declined for a third consecutive day, tapping its 20-week low at .7683. By the end of the day, the pair settled just a pip higher at .7684 with a 93-pip loss. Read more…

Swiss Franc (CHF)

The Swiss franc continued to swim in bear territory yesterday. USD/CHF took a little dive to tap its intraday low at .9334 before rallying to close the day 101 pips above its opening price at .9435. 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!