Daily Forex Fundamentals – November 2, 2011

What’s on the Economic Horizon
Fed to rock markets with FOMC statement?
U.K. construction PMI expected to stay flat
New Zealand employment data on tap

U.S. Dollar (USD)

The dollar showed no mercy on the charts as it followed up its awesome rally on Monday with another vicious performance. Once gain, it proved to the markets that it was the top dog as it pushed USD/JPY up another 21 pips and dragged EUR/USD down another 155 pips. With big events on tap today, will the dollar extend its rally? Read more…

Euro (EUR)

Boomshakalaka! With risk aversion in full tow, the euro got posterized across the charts in yesterday’s trading action. EUR/USD continued its recent slide, dropping another 150 pips to finish at 1.3703. Meanwhile, EUR/JPY erased its intervention gains, as it closed at 107.40, after trading as high as 111.50 earlier on Monday. Read more…

British Pound (GBP)

Risk aversion spooked the pound pairs from making any gains yesterday, as both GBP/USD and GBP/JPY ended in the red. Cable closed 50 pips below the 1.6000 handle while guppy landed 75 pips below its 125.76 open price. Will the pound get a chance to recover today? Read more…

Japanese Yen (JPY)

Thank you, risk aversion! After taking a big hit on Tuesday, the Japanese yen hopped on over to the winners’ side of the fence as it gained ground against higher-yielding currencies. Though it ended weaker against the dollar, with USD/JPY rising another 21 pips on the day, it rose 93 pips against the euro and 75 pips versus the pound. Read more…

Canadian Dollar (CAD)

And just like that, USD/CAD is now 200 pips above parity! Market players sought out safe havens yesterday, leaving higher-yielding currencies like the Canadian dollar out to dry. Will USD/CAD continue to climb up the charts or could a midweek reversal be in play? Read more…

Australian Dollar (AUD)

As if it didn’t lose enough pips on Monday, the Aussie lost another 200 pips against the Greenback as the RBA’s rate cut and general risk aversion struck the high-yielding currency right in the belly. Ouch! In the end, AUD/USD finished at 1.0330. Read more…

New Zealand Dollar (NZD)

Just like that, the Kiwi erased its gains from last week faster than you can say “Kim Kardashian filed for divorce!” NZD/USD sank back below the .8000 handle and closed at .7951 as risk aversion gripped the markets yesterday. Read more…

Swiss Franc (CHF)

‘Twas a tough day for the Swissy as it lost to both the euro and the Greenback yesterday. USD/CHF closed 101 pips up from its .8770 open price while EUR/CHF managed to end up 4 pips above its 1.2152 open. How will these pairs fare today? Read more…

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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!