Trading Signals and News Update For Friday

1. Friday, October 5th, 2007 (7:00 a.m. New York Time) CANADA
At 7:00 a.m. New York time we will have Canadian Employment change coming out which is expected to read at 17,000 or so, very similar to the reading from the last month when it was 23,000. If for some reasons it comes out at 35,000 or higher, that would be the highest reading in the last 6 months, and it would signify a very resilient employment market in Canada, and I think based on that USD/CAD may possibly go down by 40 pips or more in the first hour of the report. On the other hand, if it comes out at 0 or negative, that would mean a contracting employment market in Canada, and if it is a case, USD/CAD may possibly go up by 40 pips or more in the first hour of the report. If the deviation is much bigger, the move may be bigger as well. This report can move USD/CAD by as much as 80 pips or more, depending on the deviation. What I gave is a minimum deviation that I believe should move market by at least 40 pips.

SUMMARY:
* Report: Canadian Employment Change
* Sell on USD/CAD if the number will be 35,000 or higher
* Buy on USD/CAD if the number will be 0 or negative
* If the trigger is hit, expect 40 pips or more in the first hour of the report.

2. Friday, October 5th, 2007 (8:30 a.m. New York Time) USA
At 8:30 a.m. New York time we will have U.S. Non-Farm Payroll coming out. This indicator may be a little tough to trade because last month for the first time in a long time we saw a negative reading. Now the question is if whether it was a one-time fluke and it is going to be revised this month, or it was a legitimate reading that is going to set a new trend. The actual reading will matter a lot, and it is expected to rebound to 100,000 versus -4,000 last month. If for some reasons the reading is 150,000 or higher, I think it would be a message that possibly last month's reading was a fluke, and such a strong rebound may drive GBP/USD down by as much as 70 pips or more in the first hour of the report. On the other hand, if we had a reading of 50K or lower, that would be a pretty low reading after a negative reading, and I think based on that GBP/USD may possibly gain 70 pips or more in the first hour of the report. Of course, a revision will also matter. If for some reasons we will see a reading lower than expected, but the revision is revised from -4K to +60K, than it is not going to be bad for the dollar. That would be pretty normal, and possibly it would even be considered positively. Therefore, if the revision conflicts significantly, I suggest to stay out of this indicator; however, if the revision is not conflicting so the reading is above 100K and the revision is positive, this may amplify the move. Similarly, if the reading is below expectations, and revision is negative, it may amplify the move as well. If the deviation is large and a revision is not conflicting, this indicator may easily move the market by as much as 120 pips in the first hour of the report. It has happened before, and it may happen again - depending on the deviation.

SUMMARY:
* Report: U.S. Non-Farm Payroll
* Sell on GBP/USD if the number will be 150,000 or higher
* Buy on GBP/USD if the number will be 50,000 or lower
* If the trigger is hit, expect 70 pips or more in the first hour of the report.

That's all for Friday. I hope you will make some money on these big indicators.

Learn Forex Trading For FREE 24 hour Onboard Live Help Available