Daily Forex Fundamentals – October 18, 2011

What’s on the Economic Horizon

U.S. Producer Price Index and TIC Purchases Report on Deck
ZEW Economic Sentiment Reports to Continue Slide
U.K. Inflation Rate Expected to Go Higher

U.S. Dollar (USD)

When there’s a will, there’s a way! After several days of losing, the dollar was able to fight back and regain some lost ground yesterday. Take a look at EUR/USD for instance. It had gone as high as 1.3900 during the day, before falling back down below 1.3750 to clock in 117-pip loss. Read more…

Euro (EUR)

Boy, how things can change in the blink of an eye eh? After testing the 1.3900 handle during the London session, EUR/USD came tumbling down to close at 1.3744, marking a 119-pip drop from its opening price. Meanwhile, EUR/JPY backed off its highs at 107.70 and settled at 105.62, down 116 pips for the day. Read more…

British Pound (GBP)

Just like all the higher-yielding currencies in the FX hood, the pound got its hiney kicked by the dollar during yesterday’s trading. On the bright side though, it only lost 79 pips loss to the dollar when GBP/USD closed at 1.5752 which is like chump change compared to the losses that the other currencies incurred. Read more…

Japanese Yen (JPY)

Thanks to risk aversion, the yen bulls were finally able to bring out the big guns! The yen rallied versus all other currencies yesterday, stealing 118 pips from the euro and 89 pips from the pound. Read more…

Canadian Dollar (CAD)

After it looked like the Canadian dollar was gonna hit parity versus the Greenback, risk aversion propped up the Loonie to boost it from its lows. USD/CAD bottomed out at 1.0043 before zooming up to close at 1.0222, booking a 106-pip gain on the day. Boomshakalaka! Read more…

Australian Dollar (AUD)

You know how much loving AUD/USD received yesterday? Two words: diddly and squat. After its strong performance last week, AUD/USD experienced a crushing defeat yesterday. AUD/USD ended the U.S. trading session at 1.0187, a whopping 142 pips lower from its opening during the Asian session. Read more…

New Zealand Dollar (NZD)

Uh, oh! It looks like the Kiwi’s rally is running out of steam. After reaching an intraday high of .8069, NZD/USD crashed and burned on the charts yesterday, closing 130 pips below its opening price at .7921. Read more…

Swiss Franc (CHF)

Without any economic data from Switzerland, the Swissy’s scorecard was mixed during yesterday’s trading. Against the euro, it was able to bag a 22-pip win when EUR/CHF closed at 1.2354. On the other hand, it lost 60 pips to the dollar as USD/CHF ended the day at .8987. 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!