Daily Forex Fundamentals – May 23, 2012

What’s on the Economic Horizon

No changes expected from the BOJ’s monetary policy decision
U.K.’s meeting minutes and retail sales on tap
EU Economic Summit scheduled today

U.S. Dollar (USD)

Who’s the king of the hill? The Greenback is! The scrilla snatched back its throne in the charts yesterday after risk aversion sent traders back to the safe-havens. EUR/USD plummeted to 1.2680, while USD/JPY rocketed by 67 pips to 79.97. Boo yeah! Read more…

Euro (EUR)

And it returns! No, I’m not talking about the Dark Knight. I’m referring to good ole risk aversion! The euro found itself crashing again as EUR/USD fell from the 1.2800 area and closed at 1.2680. EUR/JPY, on the other hand, tried to rally from its 101.63 open but was rejected at the 102.00 handle. Read more…

British Pound (GBP)

The pound was absolutely and indubitably demolished by the safe haven dollar yesterday as the U.K’s consumer price index failed to meet market expectations. Cable, which had started the day 1.5840, found itself 83 pips lower by the end of the U.S. trading session. Read more…

Japanese Yen (JPY)

Despite being hit by a credit rating downgrade, the low-yielding yen logged in mixed results against its counterparts. USD/JPY shot by 67 pips to 79.97, while GBP/JPY also clocked in a 60-pip gain. On the other hand, EUR/JPY dropped to 101.40 and AUD/JPY slipped to 78.50. Read more…

Canadian Dollar (CAD)

So much for bouncing back! The Loonie resumed its selloff against the U.S. dollar yesterday as risk aversion came back to haunt the markets. USD/CAD started the day at 1.0170, jumped to a high of 1.0235 then closed at 1.0219. Will we see more Loonie selling today? Read more…

Australian Dollar (AUD)

Happy Pip’s comdolls all took a hit against the low-yielding Greenback yesterday on the tails of the risk aversion theme that dominated markets. AUD/USD ended up testing its intrayear lows by closing at .9817. What the heck happened? Read more…

New Zealand Dollar (NZD)

Risk assets such as the Kiwi crumbled under the pressure of the mighty safe haven Greenback yesterday as euro zone concerns hit the markets again. NZD/USD dropped like a hot potato, closing the U.S. trading session 41 pips lower from its opening price. Read more…

Swiss Franc (CHF)

The Swissy snapped its two-day winning streak as euro zone concerns weighed heavily on the foreign exchange market again. Risk aversion was the main market theme again, which meant dollar was king and the Swissy was sold-off. 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!

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