Looking at the upcoming Thursday session, there isn't too much to worry about economic announcement wise. Yes, the Bank of England has an interest rate announcement, and that of course could move the markets but quite frankly we feel that most of the markets will be fairly quiet as we await the Nonfarm Payroll Numbers on Friday.

We believe that the British pound will continue to be very consolidated, and the knee-jerk reaction that will almost undoubtedly happen as a result of the interest rate statement could offer a trading opportunity. We believe this market continues to be confined between the 1.55 level on the bottom and the 1.57 level the top. With this, we will continue to play the range for short-term trades off of short-term charts on over reaction.

The stock markets in general will more than likely be fairly quiet during the day as they tend to be ready for the employment announcement. We still have an upward bias for US stocks, and quite frankly European stocks as well as they all look like they are trying to find buyers. However, today may be a good day to stay out of the market.

Ultimately, we believe that the overall trends should continue to be what the market follows and as a result we would be very cautious about taking trades against the grain. We believe that the volatility will be a bit difficult to deal with so we stick to short-term charts.