Article Highlights

  • Australia’s MI leading index down from 0.1% to -0.1% in Nov
  • Japanese trade deficit narrowed from 0.99T JPY to 0.93T JPY
  • Fitch downgraded EFSF from AA+ to AA
  • U.K. jobs data and BOE minutes due
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Geronimo! Most major currencies are in the red against the U.S. dollar once more, as risk aversion took hold of the forex market. EUR/USD is looking at a 0.16% loss and trading more than 10 pips below the 1.2500 handle, as Fitch downgraded the euro zone’s EFSF from AA+ to AA.

Aussie pairs marked a sharper decline, after Australia’s MI leading index showed a decline from 0.1% to -0.1% in November. AUD/USD is down 0.78% so far while AUD/JPY has a 0.24% loss. Analysts over at Goldman Sachs reported that this sudden drop was spurred by a combination of falling iron ore prices, bleak data from China, and below-trend data from Australia.

Japan printed a stronger than expected trade balance, as the deficit narrowed from 0.99 trillion JPY to 0.93 trillion JPY in November. However, a closer look at the components of the report still indicated weak export growth. USD/JPY is up 0.57%, EUR/JPY has a 0.41% gain, and GBP/JPY traded 0.39% higher.

Up ahead, the forex calendar suggests that it could be an interesting London session for the pound pairs, as there are a couple of major catalysts lined up from the United Kingdom.

First up, the jobs report is due 10:30 am GMT and might show a 19.8K drop in claimants for November, which could bring the jobless rate down from 6.0% to 5.9% during the month. Next, the BOE will print the minutes of its monetary policy meeting and possibly show a 2-7 vote in favor of keeping rates on hold. Bear in mind that these events could spark a lot of volatility in the next few hours so y’all better be prepared!

U.S. Session Recap

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

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