Daily Forex Fundamentals – October 22, 2012

What’s on the Economic Horizon
Japan’s Trade Deficit Widens
Australia’s CB Leading Index Due Today

U.S. Dollar (USD)

Back-to-back, baby! The dollar clobbered its counterparts for a second day in a row last Friday after risk aversion and weak U.S. data maintained demand for the low-yielding Greenback. EUR/USD fell by 52 pips while USD/CHF jumped by 43 pips. Read more…

Euro (EUR)

Uh oh, things aren’t looking too good for the euro these days as it continued to slide down against the Greenback and the Japanese yen last Friday. EUR/USD ended the day at 1.3021, more than 50 pips down from its 1.3073 open price, while EUR/JPY closed at 103.27. Read more…

British Pound (GBP)

For the second straight day, the British pound was weighed down heavily by risk aversion. Against the safe haven U.S. dollar, the pound marked a 33-pip loss. Meanwhile, versus the low-yielding Japanese yen, the pound fell 23 pips. Read more…

Japanese Yen (JPY)

No more Mr. Nice Guy! Like its low-yielding comrades, the yen triple roundhouse kicked its high-yielding counterparts last Friday. EUR/JPY dropped by 35 pips while Guppy crashed 58 pips from its intraday high. What gives? Read more…

Canadian Dollar (CAD)

After successfully breaking above the .9850 mark, USD/CAD staged another 100-pip rally on Friday as it climbed close to .9950. The pair gapped up and opened at .9946 for this week as risk aversion seems ready to extend its stay in the markets. Read more…

Australian Dollar (AUD)

Not again! The Aussie bulls took another hit last Friday as risk aversion clouded over the markets. AUD/USD ended up with a 47-pip loss after hitting an intraday high of 1.0383. Read more…

New Zealand Dollar (NZD)

The commodity-based New Zealand dollar took a small hit last Friday, closing the U.S. trading session 37 pips lower from its opening price that day. It seems that risk aversion was the culprit behind the move as most major currencies also posted losses versus the safe haven dollar. Read more…

Swiss Franc (CHF)

No thanks to continued aversion to risk, the Swiss franc lost quite a bit of ground to both the safe haven U.S. dollar and the low-yielding Japanese yen. USD/CHF, for instance, rose to .9287 from its day open price at .9244. 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!