Just in case the sequester isn't enough to roil the currency markets, this week will also bring the payroll report.
Forecasts call for job gains around 160,000 and an unchanged employment rate, but as Italy demonstrated last week, the world is full of surprises.
That's why Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank, has a playbook for payrolls. If payrolls come in well above forecasts — over 200,000 — she expects risk appetite to increase and recommends buying the British pound against the dollar because the pound "has a correlation with risk seeking."
Conversely, if the figure is less impressive — under 160,000 — she thinks investors will become more risk averse, and she suggests the opposite trade.