Daily Forex Fundamentals – May 3, 2012

What’s on the Economic Horizon

U.K. services PMI seen at 54.4
ECB rate decision scheduled to shake markets at 11:45 am GMT
U.S. ISM non-manufacturing PMI expected to slide to 55.5

U.S. Dollar (USD)

Surprisingly enough, the dollar gained ground against most of its counterparts even though yesterday’s ADP report was a total bust. As a matter of fact, it gained 84 pips against the euro to force EUR/USD to finally break out of consolidation. Talk about defying gravity! Read more…

Euro (EUR)

With poor economic data from the euro zone and risk aversion settling in markets yesterday, can you blame the euro bears for attacking? EUR/USD ended the day with an 84-pip loss at 1.3156, while EUR/GBP edged closer to its 2-year low at .8121. Read more…

British Pound (GBP)

Make that three! The pound fell against the U.S. dollar for the third day in a row as GBP/USD just couldn’t seem to sustain its rally. After dipping to a low of 1.6160, cable ended the day right at the 1.6200 handle while GBP/JPY hovered around the 130.00 mark and closed 17 pips below it. Read more…

Japanese Yen (JPY)

Someone has been pumping iron! The Japanese yen looked extra beefy yesterday as it muscled its way through the charts. It strengthened against its major counterparts, snatching 69 pips away from the euro, 19 pips away from the pound, and even 2 pips away from the mighty dollar! Will it extend its gains today? Read more…

Canadian Dollar (CAD)

The Loonie put up a good fight against risk aversion yesterday, but it wasn’t able to hold its ground against the strong Greenback. USD/CAD rose to an intraday high of .9903 before the Loonie bulls came in and closed the pair at .9864. Read more…

Australian Dollar (AUD)

No reports? No movement! AUD/USD only moved 1 pip down yesterday as Australia didn’t publish any economic reports. After reaching an intraday high of 1.0356 and hitting a low of 1.0284, the pair eventually settled at 1.0331. Read more…

New Zealand Dollar (NZD)

The Kiwi had its wings clipped in yesterday’s trading as NZD/USD plummeted to a low of .8087 before closing 8 pips above the .8100 handle. Which economic factors weighed on the New Zealand dollar and will it continue to fall today? Read more…

Swiss Franc (CHF)

Somebody call the paramedics because the Swissy got heavily knocked out! USD/CHF opened at .9077, jumped to a high of .9153, then closed at .9135 as the Greenback drew its strength from risk aversion. Will the Swissy suffer additional injuries today? Read more…

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