April 2009

British Pound Fails Ahead of 1.50

Index Strat Risk Target
EUR/USD Short 1.3650 TBD
USD/JPY Flat
GBP/USD Short 1.50 Below 1.41

Non-Farm Payrolls Could Derail Bullish Sentiment, But Will ISM Point To Improving Economy

The upcoming Non-farm payroll report is expected to show the U.S. economy lost another 660,000 jobs in March, which would be the fourth straight above 600,000.

What To Watch For In The US Session

• Non-Farm Payrolls Ahead
• ISM Non-Manufacturing May Surprise
• RIM Earnings Could Lift Tech Stocks

Non-Farm Payrolls Could Derail Bullish Sentiment, But Will ISM Point To Improving Economy.

The upcoming Non-farm payroll report is expected to show the U.S. economy lost another 660,000 jobs in March, which would be the fourth straight above 600,000. Additionally, the unemployment rate is expected to rise to 8.5% from 8.1% in February which could dampen sentiment and add greenback support. However, the ISM Non-manufacturing report will follow shortly thereafter and if the gauge of the service sector can show a significant improvement matching the manufacturing reading then we could see risk appetite resume. Also supporting the bulls case was yesterday’s better than expected results from Research in Motion and its improved outlook.

Dow Jones 7978.08
The DJIA futures are virtually flat for the blue chip index as markets await Non-Farm payrolls.

NASDAQ 1602.63
The Nasdaq may find support on the back of the RIM outlook, but a dismal employment report could lead to a reversal in sentiment.

S&P 500 8834.38
The broader index could trade lower if the employment figures come in lower than expected as it will dim the outlook for domestic growth.

Current Snap Shot

Dow and S&P 500 at Key Resistance Levels

Index Strat Risk Target
DJIA Pending
NASDAQ Pending
S&P500 Pending