Friday, July 6th, 2007

Let's now briefly talk about what is going on tomorrow, Friday.

We have three things happening tomorrow.

1. Friday, July 6th, 2007 (4:30 a.m. New York time) UK
First of all, at 4:30 a.m. New York time, we have UK industrial production coming out. It measures both manufacturing and mining activity in United Kingdom. It is expected to read at 0.3% versus again at 0.3% last month also so they are expecting a decent reading. In my opinion, if the industrial production reads at 0.6% or higher, it would be the highest reading in almost 2 years, and we may possibly see GBP/USD going up by 40 pips or more in the first hour of the report. On the other hand, if the industrial production reads flat 0%, we may possibly see GBP/USD going down by 40 pips or more in the first hour of the report. We may see some volatility if the deviation is only 0.2% but you have to make that judgment yourself, I may personally take an after spike trade on that but it will depend on where the price levels are.

SUMMARY:
* Report: UK Industrial Production
* Possible BUY on GBP/USD if reading comes out at 0.6% or higher
* Possible SELL on GBP/USD if reading comes out at flat 0% or lower
* Expect 40 pips move or more in the first hour of the report if a trigger is hit.

2. Friday, July 6th, 2007 (7:00 a.m. New York time) CANADA
At 7 a.m. New Your time, we have employment change coming out of Canada, and it is expected that the employment will grow by approximately 17,000 in Canada versus 9,300 last month. In my opinion, if the employment comes out at 40,000 or higher, it would be very strengthening for the Canadian dollar, and we may possibly see USD/CAD going down by 40 pips or more in the first hour of the port, and I think EUR/CAD may possibly go down by approximately as much as 60 or 70 pips in the first hour of the report. On the other hand, if the employment change reads zero or negative, that would be weakening for the dollar, and we may possibly USD/CAD going up by 40 pips or more in the first hour of the report, and EUR/CAD may gain by 60 or 70 pips.

SUMMARY:
* Report: Canadian Employment Change
* Possible SELL on USD/CAD if reading comes out at 40,000 or higher
* Possible BUY on USD/CAD if reading comes out at flat, 0 or negative
* Expect 40 pips move or more on USD/CAD in the first hour of the report if a trigger is hit.

3. Friday, July 6th, 2007 (8:30 a.m. New York time) USA
Then at 8.30 p.m. NY time we have U.S. Non-Farm Employment coming out. It is a big report that everyone is anticipating. Unfortunately, it is a very hard one to trade. It may have some whipsaw actions and/or full retracements to about pre-release price. We will see what will happen tomorrow then. Non-Farm Payroll is expected to come out at about 125,000 versus 157,000 last month. If it reads 175,000 or higher, I believe that would be bullish for the U.S. dollar, and we may possibly see GBP/USD going down by 50 pips or more in the first hour of the report. On the other hand, if the report reads 75,000, I think that would be pretty bad for the U.S. dollar, and we may possibly see GBP/USD going up by 50 pips or more in the first hour of the the report. 50 pips is very conservative, it is possible the move will be 80 pips or more but, as always, it will depend on where important price levels are, and all that. I think 50 pips with such deviation is very reasonable and very conservative.

SUMMARY:
* Report: U.S. Non-Farm Payroll Employment
* Possible SELL on GBP/USD if reading comes out at 175,000 or higher
* Possible BUY on GBP/USD if reading comes out at 75,000 or less
* Expect 50 pips move (conservative) to as much as 80 pips or more in the first hour of the report if a trigger is hit.

That's all for tomorrow. I hope we both will make some good money. Good luck with your trades!