Daily Forex Fundamentals – September 22, 2011

What’s on the Economic Horizon

Fed’s Operation Twist Triggers Risk Aversion
Euro zone Manufacturing and Services PMIs on Tap
BOE Eager to Provide Support for Economy
Mixed Results from Canadian Retail Sales?
New Zealand GDP Disappoints Expectations At 0.1%

U.S. Dollar (USD)

Can you say Greenback domination? As expected, the Fed announced in its interest rate decision statement yesterday that they would keep rates as is and go ahead with Operation Twist, the plan to sell the Treasuries that it holds and use the money it gets to purchase ones with longer maturities. The result of the Fed’s move was huge Greenback rally across the board, with the dollar index ending the U.S. trading session a solid 59 percentage points higher from where it was during the Asian session. Read more…

Euro (EUR)

Funny how things can change on a dime eh? After being bought up like the Game of Thrones T.V. series and closing the weekend gap, EUR/USD got dropped like a poorly made pilot episode! After nearly testing the 1.3800 mark, EUR/USD soon found itself trading 200 pips lower, and ended the day at 1.3595. was trading below 1.3600, down nearly 200 pips from its highs on the day. Read more…

British Pound (GBP)

Ka-pow! The pound got knocked down the charts yesterday as the BOE minutes revealed the bank’s eagerness to stimulate economic growth. After consolidating around its opening price of 1.5730, GBP/USD plunged all the way its closing price of 1.5519. Read more…

Japanese Yen (JPY)

Thank you Operation Twist! Even though the yen gave up some ground versus the dollar yesterday, the currency was able to post significant gains against other major currencies. The yen managed to close 114 pips higher versus the pound and steal 18 pips from the euro. Read more…

Canadian Dollar (CAD)

So much for resistance at parity! Thanks to a wild run of risk aversion in the markets, the Loonie broke through the magical 1.0000 mark. The pair closed at 1.0058, marking an impressive 122-pip gain for the day. Will USD/CAD continue to make new highs, or could we see a retest of parity today? Read more…

Australian Dollar (AUD)

Did I just watch Junior MasterChef Australia? Those kids may be young, but they do know how to chop things up… just like how the Aussie was diced into bits yesterday! Apparently, even though expected, the market took the Fed’s Operation Twist announcement extremely negative yesterday. This led to a wide-reaching case of risk aversion, with AUD/USD ending the U.S. trading session a whopping 194 pips lower from its opening price that day. Read more…

New Zealand Dollar (NZD)

Just like most of its homies in the FX hood, the Kiwi also fell victim to the dollar’s strength during yesterday’s trading. NZD/USD opened at .8216 and tumbled all the way down to its closing price at .8003. Read more…

Swiss Franc (CHF)

Whoa! It looks like the Swissy got some action on the charts yesterday. EUR/CHF tapped an intraday low of 1.1928 and quickly traded back up to close the day at 1.2218, 67 pips above its opening price. Meanwhile, USD/CHF ended the day 88 pips higher at .8987 after plunging to a low of .8704. Read more…

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