During the session on Tuesday, the EUR/USD pair had a very volatile back and forth type of day, as the markets continue to look for some type of stability. As long as markets around the world continue to go back and forth, this pair will as well. Quite frankly, there’s nothing to think that this market is going to be easy to trade, and as a result I am standing on the sidelines as the Euro has its own problems, and of course the Dollar is a big question at this point in time due to the fact that the Federal Reserve may or may not raise interest rates. They haven’t said anything to suggest that they are going to, but it appears that the marketplace is starting to bet that they will not be able to.
Jobs numbers
The ADP number comes out today, and of course the Non-farm Payroll Numbers come out on Friday. This means that the market will probably remain volatile and the market will react to whatever the announcement is. While the ADP announcement isn’t the official one, it gives us an idea as to what the government numbers may be. At least they can show us the general direction of these numbers.
With this, I anticipate that this market is going to be very difficult to handle, and as a result I’m standing on the sidelines when it comes to the EUR/USD pair as the market will react to several different factors at the same time. Because of that, I think that a lot of people were going to feel a lot of pain between now and Friday. I will be more apt to trade this market after the Friday numbers come out, as it will give us a little bit more to deal with as far as a longer-term perspective. Ultimately, we need to get above the 1.15 level for any clarity as it would show significant strength. In the meantime, there’s a good way to lose money, putting it to work in this market.
