Daily Forex Fundamentals – May 24, 2013

What’s on the Economic Horizon

Rebound in Durable Goods Orders?
German IFO Business Climate

U.S. Dollar (USD)

The forex world was turned upside down as traders dumped the dollar like there was no tomorrow! Despite the release of some positive economic reports, the dollar was unable to capitalize on the U.S.’s strong fundamentals. It ended 84 pips lower against the euro, while giving back 112 pips to the yen. Read more…

Euro (EUR)

The euro emerged from yesterday’s trading battles with mixed results. On one hand, EUR/USD rose 83 pips to finish at 1.2938, completely erasing the previous day’s losses. On the other hand, EUR/JPY traded as low as 129.97 before finally settling at 131.72, down 59 pips from its opening price. Read more…

British Pound (GBP)

Thanks to comments from a Fed member, Cable was able to recover some of its gains yesterday. According to the Fed’s James Bullard, the central bank wasn’t really “that close” to tapering off its QE program. This resulted in Cable rising to 1.5113 from 1.5043. Read more…

Japanese Yen (JPY)

Boy, when the yen strikes back, it hits hard! It posted monstrous gains alongside the drop in the Nikkei, taking USD/JPY down 112 pips to 101.81 and EUR/JPY 61 pips lower to 131.72. Read more…

Canadian Dollar (CAD)

Following the lead of its comdoll siblings, the Canadian dollar staged a nice rally versus the Greenback yesterday. USD/CAD closed 79 pips lower to finish at 1.0293. Read more…

Australian Dollar (AUD)

What a surprise! After spending much of the past 3 weeks on the losing end, the Aussie was able to escape with a victory against the Greenback. AUD/USD dropped to as low as .9593 before the market turned and staged a comeback to take the pair to .9748, where it ended with a 52-pip gain on the day. Read more…

New Zealand Dollar (NZD)

One day the Fed says it could possibly taper off easing, and the next day it’d say something completely opposite. Yesterday, Fed’s James Bullard said that contrary to what the market thinks, the central bank wasn’t “that close” to tightening monetary policy. This enabled NZD/USD reverse its losses from the day before by rally strongly to .8164 from .8074. Read more…

Swiss Franc (CHF)

The Swiss franc showed that it’s made of sterner stuff yesterday as it was able to rally strongly versus the U.S. dollar. USD/CHF began the day at .9776, dropped as low as .9633, and then settled at .9682 at the end of the U.S. trading session. 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!