Stronger Employment number in the U.S.

Payrolls jumped by 207K in July vs expected 180k. This coupled with upward revisions for the prior month show the the economy continues to grow with little inflation. This is good news anyway you look at it.

That being said I think that the dollar will trade heavy against the Euro. It seems that at least for now the market wants to buy the Euro. Do not fight it. I am currently long looking to test 1.24 but will cut on a move below 1.23.

Stay short Usd/Brl and Usd/Mxn. Also look for the differencial between U.S. and U.K. rates to continue to come in. I currently hold those positions also.

FXTRADINGIDEAS@AOL.COM