Jobs Report Could Spur Correction: Pro

Unwinding positions ahead of the U.S. employment report sent ripples through currency markets, pushing the dollar lower against the yen, Paul Richards of UBS said Thursday.

"What we're seeing is positions unwind on anything going into payrolls tomorrow," he said.

The Japanese yen rose above 96 vs. the U.S. dollar, roughly a 3 percent move.

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On CNBC's "Fast Money," Richards called in "a key binary event," noting said that the market had expected tapering of the Federal Reserve's quantitative easing and also started to factor in the possibility of a jobs number below 150,000.

"It's certainly surprised the market, and it's caused quite a bit of blood on the currency street today," he said.

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"We could be back 3 percent the other way in 24 hours' time, but I'm not going to know that until 8:30 tomorrow morning."

A strong U.S. employment report on Friday could take their toll on equities, Richards added.

"I maintain the view that if the number creeps up near 190,000 tomorrow, the 10-year is going to break 2.30, and I think that starts a 5 to 6 percent decline in stocks – a summer correction," he said.

(Watch Video: ADP: Private Sector Employment Up 135,000)

Trader disclosure: On June 6, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long AAMRQ; Steve Weiss is long SODA; Josh Brown is long AAPL; Josh Brown is long XLF; Josh Brown is long MRK; Jon Najarian is long AAPL; Jon Najarian is long VZ; Jon Najarian is long EEM; Jon Najarian is long GLD; Jon Najarian is long TMO; Jon Najarian is long UVXY; Stephanie Link is long AAPL; Stephanie Link is long GS ; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY.