Daily Forex Fundamentals – May 24, 2011

What’s on the Economic Horizon?

China’s Manufacturing PMI drops to 5-month low
U.K.’s public sector borrowing report due today
New Zealand’s inflation expectations climbs to 3.0%

U.S. Dollar (USD)

The Greenback once again proved that it’s the king of the hill as it gained on its major counterparts when risk aversion pushed traders towards safe-haven assets. USD/JPY capped the day 23 pips higher at 82.01 after falling to a low of 81.32, while EUR/USD dropped by 79 pips to 1.4048. Read more…

Euro (EUR)

Whoa! Like a house of cards, the euro’s pips came crashing down in yesterday’s trading. It lost to all of its counterparts, giving up 79 pips to the dollar when EUR/USD closed at 1.4048. Meanwhile, EUR/JPY tumbled 166 pips from its opening price to its intraday low at 113.87.Read more…

British Pound (GBP)

What a bummer! Cable started the week on a very weak note as the Greek debt debacle continued to dominate the headlines yesterday. Cable, after it had opened the day at 1.6229, fell more than 100 pips to end the U.S. trading session at 1.6114. Read more…

Japanese Yen (JPY)

“Oh, no… This is risk aversion isn’t it?” The currency bulls probably felt like Thor as they charged the yen higher against its major counterparts on a round of risk aversion in markets. Though no big report was released yesterday, EUR/JPY dropped 33 pips to 115.20 while GBP/JPY fell 60 pips to 132.13. Read more…

Canadian Dollar (CAD)

Loonie bulls screamed “Mayday, mayday!” during yesterday’s trading and no, it wasn’t in celebration of Canada’s May Day holiday. The distress call resounded in the market as the comdoll scored its second loss to the Greenback when USD/CAD closed 33 pips higher at .9771. Read more…

Australian Dollar (AUD)

Whoa! Take it easy boys! The currency bears gobbled up the Aussie yesterday like they were teenagers rushing to see Johnny Depp in the latest Pirates of the Caribbean movie. AUD/USD broke the pattern that Happy Pip pointed out, and plunged by a whopping 137 pips to 1.0507! What gives? Read more…

New Zealand Dollar (NZD)

In the forex market, a currency can number one on the market’s buy list one day and be down in the dumps in the next. The Kiwi showed this yesterday, as it lost across the board after its stellar rally last Friday. NZD/USD was trading at .7910 by the end of the U.S. trading session, a good 30 pips lower from its week open price. Read more…

Swiss Franc (CHF)

The Swissy posted a 156-pip win against the euro on Friday. Sha-bam! Now that’s how you end the week with a bang! EUR/CHF tumbled from its intraday high at 1.2648 and closed the week at 1.2446. 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!