Daily Forex Fundamentals – September 7, 2012

What’s on the Economic Horizon

NFP expected to print higher than 120,000
Super Mario announces OMT Program
Australia’s trade deficit wider than expected

U.S. Dollar (USD)

What a good day for the dollar bears! Thanks to strong data from the U.S. and risk appetite in markets, investors bought high-yielding currencies like there’s no tomorrow. As a result, USD/CHF plunged by 25 pips while EUR/USD shot up by 43 pips. What’s in store for the dollar today? Read more…

Euro (EUR)

So that’s what Draghi and his men had been working on! The ECB decided to keep rates unchanged at 0.75% but introduced a new program called the OMT. What the heck does this and how did the euro take the news? Read more…

British Pound (GBP)

Score another one for the pound! Like a cobra waiting to strike, the pound was ever so still and silent against the dollar during the Tokyo and London sessions. But once the New York session began, it made its move, breaking out of consolidation to push the pair higher. In the end, Cable closed at 1.5938, up 37 pips on the day. Read more…

Japanese Yen (JPY)

Geronimoooo!!! The yen got triple roundhouse kicked by its counterparts yesterday thanks to a broad-based rally in high-yielding currencies. EUR/JPY rocketed by 98 pips, while GBP/JPY enjoyed a nice 110-pip boost. Why did the yen react so strongly against its counterparts? Read more…

Canadian Dollar (CAD)

What a rally by the Loonie! The Canadian currency took advantage of the improvement in risk sentiment yesterday, allowing USD/CAD to dip to a low of .9809 before closing at .9828. Will it be able to hold on to its gains this NFP Friday? Read more…

Australian Dollar (AUD)

Not this time, Aussie bears! After dropping for three days in a row, the Aussie bears finally took a breather and let the bulls take over. AUD/USD tipped an intraday high at 1.0300 before it capped the day 97 pips higher than its open price. Booyah! Read more…

New Zealand Dollar (NZD)

Finally, some signs of life from the Kiwi! The Kiwi had its strongest performance in over a month yesterday, as it posted a 74-pip gain against the Greenback. From its opening price, NZD/USD crawled slowly up the charts at the start of the day, but it picked up its pace and sprinted higher in the New York session. Read more…

Swiss Franc (CHF)

The Swissy pulled a Dr. Jekyll and Mr. Hyde yesterday as it strengthened against the dollar but weakened against the euro. USD/CHF dropped 25 pips to .9535, while EUR/CHF continued its unusual rally and ended 9 pips higher at 1.2050. Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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