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During the day on Friday, the only announcement that is going to truly mean anything to most traders will be the non-farm payroll announcement during the day, so with that being the case you can expect quite a bit of volatility as these days tend to be very choppy and erratic.
1 – It appears that the US dollar is on its back foot, mainly because the Federal Reserve has stepped away from at least a couple of interest-rate hikes for the year 2016. That being the case, it makes sense that the US dollar continues to lose value over the longer term. This is not because there is some type of concern, just simply that the US dollar may have been a bit overvalued until recently.
2 – Commodity markets will of course be very heavily influenced by the US dollar, so if it continues to fall, it’s very likely that commodities will go higher. With that being the case, watch the oil and more specifically the precious metals markets as they look very interested in going higher given enough time.
3 – Stock market should continue to do fairly well due to the low interest-rate scenario, and the fact that we are certainly looking at keeping a low for the foreseeable future in America. Pullbacks should offer value, and impulsive candles to the upside should attract call buyers going forward. The one thing that you can count on during these types of trading sessions is a lot of volatility, so you will probably have to focus on short-term charts.
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