Daily Forex Fundamentals – October 5, 2011

What’s on the Economic Horizon

U.K. to Unload Current Account and Services PMI Data
Euro Zone Retail Sales on Deck
U.S. Employment and Non-Manufacturing Figures Expected to Weaken

U.S. Dollar (USD)

After staging a solid rally throughout the Tokyo and London sessions, the dollar executed a complete reversal to head down the charts. It took a blow to the gut as Fed Chairman Ben Bernanke dished out very dovish words, snuffing out demand for the American currency. As a result, EUR/USD finished 117 pips higher at 1.3321. Read more…

Euro (EUR)

Did we see a relief rally or just an overdue correction? In any case, an improvement in appetite for the euro pushed it higher against its major counterparts, boosting EUR/USD 117 pips up to 1.3321. Meanwhile, EUR/JPY also enjoyed a 130-pip lift to 102.45. Read more…

British Pound (GBP)

It was a mixed day for the pound yesterday as it ended the day higher against the Japanese yen but lost ground to the U.S. dollar and the euro. GBP/USD dipped to a low of 1.5341 but pulled up to close at 1.5437 while GBP/JPY ended 32 pips up from its 118.41 open price. Will it find a clearer direction today? Read more…

Japanese Yen (JPY)

When risk appetite strikes, you know the yen’s gonna eat dust! It gave ground to all its major counterparts yesterday as traders turned back to higher-yielding currencies. When all was said and done, USD/JPY finished 30 pips higher at 76.91 while EUR/JPY rallied 130 pips to 102.45. Read more…

Canadian Dollar (CAD)

Not so fast, Loonie bears! Just when we thought that USD/CAD was in for even bigger gains yesterday, currency bulls stepped up and bought the comdolls on a relief rally. USD/CAD found resistance at its 1.0658 intraday high before it fell back and closed only 38 pips higher than its open price. Read more…

Australian Dollar (AUD)

The Aussie spent most of the day sliding down the charts, but it made a last minute rally to erase most of its losses late in the New York session. From its intraday low of .9389, it flew up to close at .9542, just 22 pips below its opening price. Read more…

New Zealand Dollar (NZD)

What a finish! NZD/USD was off to a weak start during the Asian session as it retested its former lows around .7500. However, the pair refused to lag behind as it pulled up and finished 51 pips up from its .7549 open price. Was that the start of a reversal or was it merely a retracement? Read more…

Swiss Franc (CHF)

After topping out at .9262, USD/CHF pulled back and erased some of its gains for the day to end 14 pips up from its .9196 open price. EUR/CHF, on the other hand, had a stronger run as it rallied more than 120 pips from its 1.2143 open. Read more…

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