Daily Forex Fundamentals – October 20, 2011

What’s on the Economic Horizon

Initial Jobless Claims, Existing Home Sales, and Philly Fed Index Due Today

German PPI Predicted to Have Turned Positive
No Rise in U.K. Retail Sales Expected for September

U.S. Dollar (USD)

It was a crazy day for the dollar yesterday as it traded in a mixed manner versus other major currencies. While it didn’t move versus the yen, it gave up a lot of ground to the pound. Against the euro, the dollar initially started the day very weak but it suddenly rallied once the Asian session ended! The U.S. dollar index ended the U.S. trading session at 77.55, just 8 percentage points higher from its opening level that day. Read more…

Euro (EUR)

After seeing a lot of euro zone drama and rumors that could rival a whole season of Jersey Shore, the euro gave up most of its intraday gains and ended the day lower against its major counterparts. EUR/USD capped the day 20 pips lower than its intraday high, while EUR/GBP closed with a 32-pip loss at .8720. Read more…

British Pound (GBP)

Finally, some swag! The pound powered up the charts in yesterday’s trading, after dipping to an intraday low of 1.5699 against the dollar. GBP/USD then reached an intraday high of 1.5848 but closed lower at 1.5771 with a 44-pip gain. Will the pound be able to trade past resistance at the week open today? Read more…

Japanese Yen (JPY)

Similar to the dollar, the yen’s price action yesterday was as mixed as a Piña Colada! It remained steady versus the dollar, went on a roller coaster ride with the euro, and lost against the pound. Hah, that’s what shifting risk sentiment does – it takes you everywhere! Read more…

Canadian Dollar (CAD)

Not so fast, Loonie bulls! Just when we thought that the Canadian dollar is good for another trip up the charts, we saw the Greenback bulls take back the crown as the king of the pips. USD/CAD only reached an intraday low of 1.0085 before it went up and closed 57 pips higher than its open price. Read more…

Australian Dollar (AUD)

Unfortunately for the Aussie, it turned out to be one of yesterday’s losing currencies. No thanks to rumors that the EFSF expansion agreement between France and Germany would no fulfill expectations, AUD/USD ended the day with a small 53-pip defeat. Read more…

New Zealand Dollar (NZD)

Without any economic data on tap from New Zealand, the Kiwi just went through the motions in yesterday’s trading like a leaf drifting on the sea. NZD/USD got rejected from resistance at the .8000 psychological handle and ended the day 39 pips below its opening price. Read more…

Swiss Franc (CHF)

The Swissy got another good beating from the bears yesterday as the lack of economic reports made it vulnerable to market sentiment. Ka-pow! The euro knocked out 54 pips out of it when EUR/CHF ended the day at 1.2417. Meanwhile, the dollar snatched 49 pips out of it as USD/CHF closed higher at .9031. 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!