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Could be another very quiet afternoon

By   || September 2, 2010 at 15:32 GMT
|| 5 comments || Add comment

Yesterday was extremely slow in the US afternoon and I fear a repeat today.

The stakes are fairly high tomorrow as an employment report that exceeds expectations will further buttress hopes that the US will be able to avoid a double-dip recession. If the data is better than expectations, look for safe-havens like USD, JPY and CHF to bear the brunt of the price action. Commodities currencies are the likely winners with majors like EUR and GBP next in line.

IF the data is appreciable worse than expected, turn the above forecast upside-down…

Reflation plays like AUD and CAD would suffer and the USD, JPY and CHF would be the likely winners.

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5 Responses to “Could be another very quiet afternoon”

  1. Annie on September 2nd, 2010 15:33 GMT
  2. John on September 2nd, 2010 15:43 GMT

    Hi Jamie. What happens to eurgbp if the reports are better than expected tomorrow?

  3. karthik on September 2nd, 2010 16:55 GMT

    but isnt this strange…worse data from USA will be good for USD??!!

  4. Jamie Coleman on September 2nd, 2010 17:02 GMT

    It is strange, but that has been the case for the better part of the last two years…

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