Daily Forex Fundamentals – October 10, 2011

What’s on the Economic Horizon

Uncle Sam Off On Holiday Today
Euro zone Sentix Investor Confidence Index on Tap

U.S. Dollar (USD)

That’s what you call a rebound! Thanks to some great NFP figures, we saw higher yielding currencies soar up the charts early in last Friday’s New York session, with EUR/USD hitting as high as 1.3526. However, the gains were short lived as a couple of credit downgrades sent traders back to the safety of the Greenback, causing EUR/USD to finish at 1.3387, down 63 pips on the day. Read more…

Euro (EUR)

Just when I thought the euro had it going, Fitch comes in and slaps a downgrade on both Spain and Italy! EUR/USD barely enjoyed its stay around the 1.3500 handle before dropping to a low of 1.3361 and closing at 1.3387. EUR/JPY wasn’t spared from the tumble as it ended 12 pips below the 103.00 mark. Read more…

British Pound (GBP)

British pound, there’s hope for you yet! It seems the markets are taking the BOE’s recent move well as the demand for the pound remained strong on Friday. The buying frenzy saw GBP/USD rise 107 pips to 1.5560 just as EUR/GBP fell 100 pips to close at .8604. With the reports scheduled for release this week, we could see even bigger moves ahead for the pound! Read more…

Japanese Yen (JPY)

Mixed day for the yen, as it managed to sneak in a gain versus the euro, but got absolutely destroyed by the pound. After hitting an intraday high at 103.87, EUR/JPY ended the day at 102.88, marking a 16-pip loss on the day. Meanwhile, GBP/JPY soared up the charts, gaining 118 pips to finish at 119.58. Read more…

Canadian Dollar (CAD)

Last Friday was a topsy turvy day for the Loonie as it was thrown this way and that by economic reports and risk sentiment. USD/CAD dipped to a low of 1.0236 before shooting back up and ending the day at 1.0384. What happened that day? Read more…

Australian Dollar (AUD)

“Good but not great!” is the best way to describe the Aussie’s performance last Friday. Riding on the coattails of risk appetite early in the New York session, AUD/USD soared to a high of .9880 before tumbling down later in the day on a wave of risk aversion. By the day’s close, AUD/USD was at .9779, up just 23 pips from its opening price. Read more…

New Zealand Dollar (NZD)

With no reports to lift it up, the Kiwi had a hard time taking flight last Friday. NZD/USD recorded its first slide in four days as it dropped 20 pips to close at .7702. Has the Kiwi’s comeback faltered or will it find a second wind? Read more…

Swiss Franc (CHF)

SNB officials must’ve been really happy with what they saw last Friday. Surprisingly, the Swiss franc weakened against both the dollar and the euro as USD/CHF rallied 73 pips and EUR/CHF climbed 34 pips. Will it continue to weaken this week? Read more…

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