April 1, 2016. US Unemployment day.

Unenjoyment Day....I mean Unemployment Day for the US. All the words have been written and said. Below is a snapshot (just for record keeping sake) of the strongest and weakest currencies as NA traders enter for the day.

The JPY is the strongest (flight into the relative safety of the JPY?) . Stocks are getting hammered in Europe with the Dax down -2.12%, Eurostoxx down 1.95%, and the London FTSE down 1.23%. US markets have the S&P futures down 8 points and the Nasdaq down futures down 17 points at the moment. Oil prices are down at the lows for the day at $37.40, down 2.45% (even though there is a proposal to use plastic barrels made of oil to take out the oil supply - awesome April 1 post Ryan. I heard there were going to use the same idea for beer cans and Donald Trump said he would explore building tanks made of plastic too).

The EURUSD is trading at the highs for the day. The GBPUSD is trading near the lows. Which means the EURGBP is pushing higher. The EURGBP is now trading at the highest level since December 14, 2015 2014 AND more importantly, it moved above the 200 week MA at the 0.7930 level. The EURGBP has not closed above the 200 week MA since the week of October 20, 2013. Needless to say, that pairs break could have implications on how the market (i.e. EURUSD and GBPUSD) trades after the report (muddying the water even more).

Risk is high (see video from yesterday here). A move above the 1.1465 in the EURUSD opens up some further upside potential (after the report). ON the downside, the old high at 1.1375 will be eyed as downside support. For the USDJPY a move below the 112.00 will be eyed. ON a bullish move the 100 and 200 hour MAs come in at 112.69-74. A move above those levels will be more bullish.

Once again though, with the action in the EURGBP today, there is the possibility of a real ugly, messy, market today, where the tail wags the dog (i.e., the cross controls the EURUSD and the GBPUSD). Add stock market jitters and the impact on the JPY and it makes for a volatile cocktail.

Below is a calendar of all the stuff out today. In addition to the NFP, the ISM PMI data will be released at 10 AM along with construction spending and Michigan Sentiment. Canada employment will NOT be released today but the RBC Manufacturing PMI will be released at 9:30 AM.