By Abdul H. Jaffar As extended hours of the New York session coming to an end around 8:30pm eastern, I could not help but noticed the quote trend for Gold and Crude Oil futures is more red than green; which means there are more sellers than buyers of Dollar than the two primary commodities. Taking that hint, I further checked the put/call ratio and it confirmed that gold stood at 1.28 and crude at 2.72 times respectively. Sentiments report also points to a risk-off, as Yen, Swiss and the Greenback lead the band.
Now, we know that market is dynamic, and this can change in a jiff. It could have been an insider tipping the NFP numbers for tomorrow or the Canadian employment figures or whatever that maybe; there will always be risk that you could be wrong in the market. So risk control is imperative in your trading discipline. Easier said than done. I know.
Earlier today, UBS too point to a stronger Dollar in the form of 2.3R trade, long USD/CAD @ 1.3080 with 50 pips stop loss and 115 pips rewards. Market is definitely gearing up for the expectation of a lower US unemployment rate, 10.2% to 9.8%, with 1.4 million jobs added compared to 1.763 million jobs previously. On the Canadian side, the rate is expected to fall from 10.9% to 10.1%, with 275 thousands job added compared to 418.5 thousands previously.
Let’s see how it goes.
Disclosure:
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RTC Team