Daily Forex Fundamentals – October 21, 2011

What’s on the Economic Horizon

German Ifo Business Climate Index Coming Up
Canadian Inflation To Remain Subdued.
U.K. Public Sector Net Borrowing Figures Scheduled For Today

U.S. Dollar (USD)

With risk sentiment twisting and turning throughout the day, dollar trading was as mixed as a bag of M&Ms! EUR/USD tested both its recent highs and lows, but ultimately stayed within range and closed at 1.3783, up just 32 pips on the day. Meanwhile, USD/JPY remains in consolidation mode, as it is still chillin’ below the 77.00 handle. Read more…

Euro (EUR)

Just like Willow Smith’s hair, the euro got whipped back and forth on the charts during yesterday’s trading. EUR/USD reached an intraday high of 1.3843 and hit a bottom at 1.3656 before ending the day 32 pips above its opening price at 1.3783. Read more…

British Pound (GBP)

Which currency pair went on a wild ride and experienced a lot of volatility yesterday? If you answered Cable, then give yourself a pat on the back! Cable’s price action turned to be very crazy one due to the varied results on economic data. GBP/USD began the day at 1.5771, followed by a rally above 1.5800, and then a crash back down below 1.5700! At the end of the day, the pair was sitting at 1.5798, just 27 pips higher from its opening price! What a trip! Read more…

Japanese Yen (JPY)

With the markets still in consolidation mode, yen crosses traded within their daily ranges and failed to make any new highs or lows. EUR/JPY traded between 105.00 and 106.00, while GBP/JPY stuck within its recent range of 120 pips. Read more…

Canadian Dollar (CAD)

Victooorrry! Despite yesterday’s very volatile trading, the Loonie was able to hustle some muscle towards the end of the New York session. USD/CAD closed 52 pips below its opening price at 1.0149. Read more…

Australian Dollar (AUD)

It’s all about ranging mate! Just like other major currency pairs, AUD/USD stuck within its recent range, as uncertainty continues to cloud the markets. AUD/USD closed at 1.0242, up just 20 pips from its opening price. Read more…

New Zealand Dollar (NZD)

Up and down the Kiwi had gone, where it ended up… I know! The Kiwi went everywhere yesterday as risk sentiment kept shifting intraday. First was a strong a round of risk appetite which resulted in a strong Kiwi rally. Once the U.S. session rolled along, however, the move up was reversed and the Kiwi dropped back down to its Asian lows. After that, the Kiwi rallied again to end the day at .7942, just 28 pips higher from where it began that day. Read more…

Swiss Franc (CHF)

As traders become jittery about the European debt crisis, the love for the safe haven franc also grows. The Swissy was able to post convincing gains yesterday as many traders remained unconvinced that European financial officials would be able to find a solution to euro zone’s debt problems. The Swissy closed the U.S. trading session 97 pips higher versus the euro and 92 pips higher against the dollar. 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!