Daily Forex Fundamentals – October 3, 2011

What’s on the Economic Horizon

ISM Manufacturing PMI on Deck
U.K. Manufacturing PMI to Improve to 48.9

U.S. Dollar (USD)

Give the Greenback a standing ovation folks! Thanks to positive U.S. data and euro zone debt fears, the currency was able to stage a magnificent performance last Friday as it gained against almost all major currencies. EUR/USD, for instance, closed the day at 1.3396 , 194 pips lower from its opening price during the Asian trading session. Read more…

Euro (EUR)

The currency bears sure know how to party! The euro bulls ended the trading month with a bang last Friday as they dragged the euro to multi-hundred-pip losses against its major counterparts. EUR/USD ended up falling by 194 pips to 1.3396, while EUR/GBP also plunged by 112 pips to .8592. Read more…

British Pound (GBP)

Despite the lack of economic data from the U.K. last Friday, the pound was able to keep its losses at a minimum, compared to the other higher-yielding currencies. GBP/USD fell by 25 pips from its 1.5616 open price while GBP/JPY even ended in the green. How will it perform this week? Read more…

Japanese Yen (JPY)

The yen exhibited a bit of schizophrenia last Friday as it traded mixed versus other major currency. The yen gave up a lot of ground to the Greenback and the pound, but at the same time, it was able to surge higher against the euro. Read more…

Canadian Dollar (CAD)

Better-than-expected GDP? Meh. Despite a positive GDP report, the Loonie failed to attract currency bulls amid the risk aversion in markets. USD/CAD easily shot above its intraweek highs and closed 117 pips above its open price. Read more…

Australian Dollar (AUD)

It was another day of defeat for the Aussie last Friday as it marked its third straight day of loss versus the Greenback. AUD/USD started the day at .9785 only to find itself 109 pips lower by the end of the U.S. trading session. It fared much better versus the yen though, as AUD/JPY only fell 47 pips. Read more…

New Zealand Dollar (NZD)

Thanks to a couple of credit rating downgrades, the New Zealand dollar slumped to its six-month low against the Greenback. NZD/USD tumbled by 94 pips from its .7717 open price and ended at .7623. Will it have a chance to recover this week? Read more…

Swiss Franc (CHF)

Oops, I did it again! USD/CHF made another gap over the weekend but to the upside this time. The pair made an 89-pip jump from its .8975 open price last Friday to close at .9064, then went on to open at .9113 this week. Meanwhile, EUR/CHF’s performance wasn’t as stellar since it slid below the 1.2200 handle and closed at 1.2143 last week. Read more…

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