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Nonfarm Payroll numbers is one of the biggest movers of the market, and quite frankly can cause a lot of volatility around the entire world. The situation in Greece will of course possibly cause a bit of volatility as well, but we cannot back to that into our analysis as there are far too many moving parts and unpredictable possibilities.

1 – With that being said, pay attention to the US dollar. We could see strength in the US dollar which could send the EUR/USD pair for the short-term. However, we see quite a bit of support below so we would look at that as a potential buying opportunity. This remains true as long as we can stay above the 1.10 handle.

2 – However, the JPY/USD pair should take off to the upside. On top of that, it avoids the European Union in general, and as a result that will be a good thing. It will be more of a “pure play”, and therefore should give us less trouble.

3 – The oil markets will also be very heavily influenced by what goes on in the US dollars. Because of this, we are buying calls in these markets as long as we can remain above the $58 level in the WTI market, and the $60 level in the Brent markets. In general, we feel that any knee-jerk reaction to the downside should more than likely offer a continuation of the consolidation though. In general we are positive on oil, but recognize that in the middle the summer, markets very rarely make massive moves.