Daily Forex Fundamentals – November 10, 2011

What’s on the Economic Horizon

Italian Bond Yields Continue to Surge
Chinese Data Fuel Concerns About the Global Economy
BOE Interest Rate Decision Scheduled Today
U.S. Trade Deficit Seen To Have Widened in September

U.S. Dollar (USD)

Halloween may already be over, but it looks like the markets aren’t done trick-or-treating just yet! Yesterday, concerns from all over the world spooked investors and forced them to flee to the safety of the dollar and the yen. Read more…

Euro (EUR)

The euro experienced a damaging hit across the board yesterday as fear gripped the markets once again. Risk aversion was the result of two events. One was the resignation of Italian Prime Minister Berlusconi and the other was the unexpected rise in Italian bond yields. EUR/USD was sitting at 1.3555 by the end of the U.S. trading session, almost 300 pips lower from its opening price that day. Read more…

British Pound (GBP)

The pound suffered yesterday as the weight of risk aversion was just too heavy for the markets. GBP/USD dropped 167 pips to close at 1.5927, while GBP/JPY closed at 123.96, down 116 pips on the day. Read more…

Japanese Yen (JPY)

Although the yen wasn’t able to end the day with a win against the dollar, it was still able to get 201 pips from the euro when EUR/JPY ended the day at 105.49. Sweet! Read more…

Canadian Dollar (CAD)

No thanks to risk aversion, the Loonie found itself on the Greenback’s trail the entire day. USD/CAD, which had opened the day at 1.0083, found itself at 1.0219 by the end of the U.S. trading session. Read more…

Australian Dollar (AUD)

Ka-pow! Aussie bulls got hit hard by risk aversion yesterday. AUD/USD opened at 1.0399 and plunged all the way down to its closing price of 1.0154. If you do the math, that’s a whopping 245-pip loss for the Aussie! Read more…

New Zealand Dollar (NZD)

Talk about a wipeout! The kiwi got murdered yesterday, as a wave of risk aversion swamped the markets. NZD/USD dropped a massive 169 pips, falling all the way down to .7818. Could we see more of the same today? Read more…

Swiss Franc (CHF)

Mixed results for the franc yesterday, as it succumbed to dollar strength but managed to overtake the euro. USD/CHF rose 139 pips to finish at .9088, while EUR/CHF closed 65 pips lower at 1.2318. 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!