French nonfarm payroll numbers come out immediately during the session on Wednesday, anticipated to be 0.1% for the last quarter. This probably won’t have a massive effect on the markets in general, although the obvious places to look will be the CAC, and the EUR/USD. It is possible that a better than anticipated number could cause a little bit of a jump higher in the Parisian index, as well as the EUR/USD, binds as far as the euro is concerned, that should only give you the opportunity to sell from higher levels.
After that, we are watching the crude oil inventory numbers out of the United States, as it could have an effect on the light sweet crude market. With that, we feel that the market is probably best played after the number is released, and if we get a little bit of a pop higher, that could be a nice selling opportunity as well remains very negative. If we get a little bit of a bounce higher, we would be looking to buy puts later in the day.
The Australians release their jobs report later in the session as well, anticipated to announce 12,000 jobs added last month. The unemployment rate is expected to be 6.3%, and this of course can move the AUD/USD pair. What will be interesting for us is to pay attention to the announcement coming out of the country of New Zealand. Although there is an interest rate decision, the real market moving event will be the statement afterwards, as anytime a central bank expresses concern about global growth, that could cause a bit of weakness and various stock markets around the world. However, ultimately we believe that most of the action during the session will be of a technical nature. We believe that the overall themes will continue, which of course is euro weakness, stock market strength, and energy weakness.
It appears the money is flowing out of your up, and heading into North America. We see no reason why this wouldn’t continue today.
