Daily Forex Fundamentals – May 18, 2011

What’s on the Economic Horizon

Will the FOMC minutes weigh on the dollar?
BOE minutes expected to show that more members are hawkish
Canada’s leading index and wholesale sales reports on deck!

U.S. Dollar (USD)

With a handful of negative reports, how can the dollar get its groove on?! It ended yesterday’s trading lower against all of its major counterparts except the yen. It was able to shake its tush to a high of 1.4121 against the euro, but quickly gave up its gains and ended the day with a 55-pip loss. Boo! Read more…

Euro (EUR)

“I may have been losing in the last couple of days, but I’m not out yet,” cried the euro bulls yesterday as they marked their second day of gain yesterday. Despite a weak ZEW economic sentiment survey, EUR/USD was able to close the U.S. trading session at 1.4223, almost 60 pips higher from its opening price during the Asian session. Read more…

British Pound (GBP)

“It’s getting hot in here… so take off all your….” I’m talking about U.K. inflation data of course! Thanks to strong CPI figures, GBP/USD rose as high as the 1.6300 handle before closing at 1.6244, 40 pips higher on the day. Read more…

Japanese Yen (JPY)

Party’s over yen! BOJ Governor Masaaki Shirakawa played the party-pooper yesterday with his pessimistic comments on the economy, sending the yen into the bear lair. It lost 62 pips to the dollar when USD/JPY closed at 81.37 and 121 pips to the euro when EUR/JPY ended the day at 115.74. Read more…

Canadian Dollar (CAD)

Talk about being fickle! USD/CAD found itself see-sawing in the charts yesterday as it bounced around an 80-pip range. While it had rallied as high as .9794 from its day open at .9738 during the session, it actually closed the day with a small 8 pip loss at .9730. Read more…

Australian Dollar (AUD)

Mission 1.0600 accomplished! After getting rejected at the psychological handle a couple of times yesterday, the Aussie was finally able to hustle enough muscle to break through resistance just before the end of the New York session. AUD/USD ended the day 29 pips higher from its opening price at 1.0619. Read more…

New Zealand Dollar (NZD)

It ain’t how you start the date, it’s how you finish it! After having a slow start, the Kiwi bulls picked up their game in the U.S. session and pushed NZD/USD higher for the day. The pair tested as low as .7764 in intraday trading before closing at .7839, marking a 21 pip gain. Read more…

Swiss Franc (CHF)

Make that two in a row! With the dollar slumping across the board, USD/CHF posted its first back-to-back drop in over two weeks. The pair managed to close another 28 pips lower, finishing at .8811. 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!