My friends, after today’s dollar debacle (in the Forex market), you can’t afford to miss the Non Farms Release tomorrow at 8:30am EST.
[column size=”1-2″ last=”0″ style=”1″] Many times when the U.S. Stock market is blasting upward, it means bearish US Dollar direction in the Forex market. Weird huh?
Today the stock market sky-rocketed today passing yearly highs for both the S&P and NASDAQ.
If you were in front of your charts today, you saw the major volatility. That could just be an appetizer of tomorrow’s main course.
At 8:30am EST alone we have 5 high impact events all being released.[/column]
Non Farm Friday
September is a month where volume in the market increases. This means volatility could increase as well. Coming into the year’s forth quarter, the sky is the limit to what we can see take place with tomorrow’s Non-Farm Employment Change.
The Non-Farm Employment Change measures the difference in number of employed U.S residence from the prior month.
This report is released the first Friday of each month and is known to create volatility when it touches the market.
After today’s stock market sky rocket and positive ISM and ADP Non-Farm release, investors will be watching their computer screens like hawks tomorrow at 8:30am.
At the same time (8:30 am EST) there are 3 High Impact Canadian News announcements. With a perfect storm I expect the Dollar to cover the ground it lost from today.
The perfect storm would be a bullish Non-Farm USD release and bearish CAD news. Look at the chart above to see more reasons why I think the dollar will make up for today’s losses with a positive Non-Farm release.
Always be careful trading the news. If it’s not the perfect storm, your account could get washed away.
Additional Info (Euro news)
Adding to the excitement of today’s frenzy, ECB (European Central Bank) President Mario Draghi presented his Bond-Buying Program. It’s the most aggressive attempt to combat the Euro crisis to date. Take a look at this article from Larry Elliot at TheGuardian who thinks Draghi’s plan will not work. Whether he is right, we may find out soon.
What I do know is that it will take work for the Euro Zone to dig out of the hole they are currently in.
Winner’s Edge Trading, as seen on: