Daily Forex Fundamentals – October 26, 2011

What’s on the Economic Horizon
EU Finance Ministers’ summit delayed again
RBNZ to keep rates on hold
U.S. durable goods orders due today

U.S. Dollar (USD)

“I get knocked down but I get up again,” sang the Greenback yesterday when it had a Tub Thumping day in the charts. The U.S. dollar gained against most of its major counterparts, except for the Japanese yen and the British pound. USD/JPY tried to hold on to the 76.00 handle as it closed just 4 pips below it, while GBP/USD squeezed out a small gain and ended 4 pips above its 1.5900 open price. Read more…

Euro (EUR)

Well, well, well, it appears that the bulls and the bears have finally gotten tired of battling it out in the forex arena. Yesterday, the euro simply moved sideways across the board, with EUR/USD trading within a tight 100-pip range. EUR/USD ended the U.S. trading session at 1.3904, barely changed from its open price at 1.3926. Read more…

British Pound (GBP)

Despite the dovish comments from the MPC, the pound stayed strong against its major counterparts. GBP/USD tipped an intraday high of 1.6039 before it closed 4 pips higher than its open price. Meanwhile, EUR/GBP slipped by 16 pips to .8694. Read more…

Japanese Yen (JPY)

Thanks to the surge in risk aversion, the Japanese yen was able to outpace its major counterparts yesterday. EUR/JPY closed 33 pips down from its 105.94 open price while GBP/JPY ended at 121.49. USD/JPY even fell to a new low of 75.74, fueling rumors that the BOJ will intervene in the currency market. Will this happen anytime soon? Read more…

Canadian Dollar (CAD)

No thanks to a very dovish Bank of Canada (BOC), the Loonie took a major hit across the board yesterday as it tumbled against other major currencies. By the end of the U.S. trading session, the Loonie had already given up 109 to the yen and 130 pips to the dollar. Read more…

Australian Dollar (AUD)

The Aussie could use a shoulder to cry on as it lost against both the Greenback and Japanese yen yesterday. AUD/USD closed almost 50 pips below its 1.0476 open price while AUD/JPY ended at 79.20. Will risk aversion continue to weigh down the Aussie today? Read more…

New Zealand Dollar (NZD)

With no economic reports released from New Zealand yesterday, the Kiwi was vulnerable to the price action of the comdoll bandwagon. NZD/USD retreated by 111 pips and closed at .7961 after reaching an intraday high of .8080. Read more…

Swiss Franc (CHF)

When the franc starts gaining against its counterparts the way it did yesterday, you just know there’s risk aversion in markets! USD/CHF slipped by 23 pips to .8789, while EUR/CHF also dropped by 53 pips and closed at 1.2219. 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!