Friday 6 September: post NFP.

NFP is reported soft...but not too soft. All in all, my initial thoughts are, although the 'headline number' is a below forecast....it is 'soft landing data' due to the unemployment rate coming down a little... and average earnings going up a little.

At the same time, Canada employment data is poor, with unemployment up and average wages down.

It appears the market doesn't quite know what to do with the news, is the FED behind the curve? Is a .50 BP rate cut required? (In my humble opinion, I think .25).

When I initially saw the data, my first thought was for an AUD CAD long, based on consistently disappointing data from Canada and a still hawkish RBA. But that's a trade that needs to be placed in a 'risk on' environment. And with the VIX bouncing about above 20 and the S&P starting to look under pressure, we don't have a positive tone at the moment.

After sitting around watching the charts bounce up and down. I've decided to let the market grapple with itself and I'll start fresh on Monday.

So, for now, I'll enjoy the last of the afternoon sun and wish you a very pleasant weekend....weekly review and currency overview to follow.

Feel free to email any questions: johnelfedforexblog@gmail.com