What’s on the Economic Horizon

Fed to release its FOMC meeting minutes today
BOJ monetary policy statement on tap
CPI reports from the euro zone due today

U.S. Dollar (USD)

The dollar’s price action yesterday was as mixed as Happy Pip’s drinks when traders played the classic game of risk aversion. The dollar gained on the high-yielding currencies, which dragged EUR/USD 230 pips lower to 1.4013 and GBP/USD 131 pips down to 1.5900.

Euro (EUR)

Woah! It seems like the market grooved to Snoop Dogg’s famous tune yesterday as investors dropped the euro like it’s hot! The shared currency lost to almost all of its counterparts, giving up 229 pips to the yen when EUR/JPY closed.

British Pound (GBP)

The pound began the week on a disappointing note yesterday as risk aversion managed to make its way back into the foreign exchange markets. Once again, the culprit was none other than the eurozone debt debacle. GBP/USD, after it had opened the day at 1.6031.

Japanese Yen (JPY)

Safe haven currencies rock! Despite the release of mixed economic reports in Japan, the yen clobbered its chart partners yesterday on a big wave of risk aversion in markets. USD/JPY ended up 31 pips down from yesterday’s open price.

Canadian Dollar (CAD)

Just like its comdoll homies, the Loonie fell victim to risk aversion yesterday and scored a loss against the dollar. USD/CAD skyrocketed up the charts after opening at .9621, closing the day 71 pips higher.

Australian Dollar (AUD)

Ooomph! The Aussie was hit with a one-two punch yesterday when a sharp selloff due to risk aversion was complemented by weak economic data from Australia.

New Zealand Dollar (NZD)

Ouch! No thanks to another case of risk aversion, the Kiwi bulls experienced a massive beating yesterday. NZD/USD, after opening the week at .8363, fell to .8276 by the end of the U.S. trading session.

Swiss Franc (CHF)

Score one for the Swissy! The strong case of risk aversion helped the Swissy gain a significant amount of ground versus the euro yesterday. EUR/CHF ended the U.S. trading session at 1.712.

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!