Daily Forex Fundamentals – May 21, 2012

What’s on the Economic Horizon

U.K.’s Rightmove house price index falls flat in May
Spanish and Italian bond yields spike above 6%

U.S. Dollar (USD)

Technical traders must be patting themselves on the back for spotting the sweet doji on the dollar index! After rising for 14 consecutive trading sessions and staging the strongest rally since 1985, the Greenback finally pared its losses against its major counterparts. Here are the details. Read more…

Euro (EUR)

Finally, the euro’s losing streak ends at eight! EUR/USD closed last week 72 pips above Friday’s open at 1.2776. Meanwhile, against the yen, the euro was able to score a 35-pip win at 101.02. What turned around the shared currency’s luck? Read more…

British Pound (GBP)

Last Friday, market participants started speculating about the possibility of another round of quantitative easing from the U.S.. This gave the chance for Cable bulls to fight back. The pair fell initially to 1.5750, but as soon as the European trading session began, it rallied non-stop to close the day at 1.5831. Read more…

Japanese Yen (JPY)

Whoever said that all good things come to an end probably shorted the safe-haven currencies last Friday! Thanks to profit-taking ahead of the G8 weekend meetings, the yen bears helped push EUR/JPY 35 pips higher to 101.02 while stopping GBP/JPY’s losses with a doji at 125.18. Read more…

Canadian Dollar (CAD)

Oh, Loonie. Sometimes, even positive data just ain’t enough! With markets still neck-deep in risk aversion, the Loonie scored another loss to the dollar. USD/CAD ended Friday’s trading 21 pips higher at 1.0210. Read more…

Australian Dollar (AUD)

Looks like the Aussie bulls didn’t get the memo on the profit-taking and the risk rally party last Friday! While low-yielding currencies took hits against the higher-yielding ones, AUD/USD still managed to clock in a 90-pip loss to .9816. What the heck happened?! Read more…

New Zealand Dollar (NZD)

Unlike the European currencies, the Kiwi still found itself on the back foot as it continued to give ground to the safe haven Greenback last Friday. NZD/USD, which began the day at .7639, was trading 7 101 pips lower by the end of the U.S. trading session. Read more…

Swiss Franc (CHF)

For the first time in nine days, the Swissy was able to rally against the Greenback. USD/CHF, which began the day at .9454, closed the U.S. trading session at .9400 and marked a 54-pip victory. Is this the beginning of a new trend? Read more…

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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!