How to Get Ahead of a Promising Jobs Report

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New jobs data will be reported Friday, and investors are guardedly optimistic.

Here's how to trade the glass-half-full mood.

Time was, investors were expecting Friday's jobs report to spur a rush for the exits. But that is soyesterday. With this morning's ADP report showing 91,000 private-sector hires - nothing to write home about, but not a disaster either - there is hope for Friday's report.

'I think there is potential for a better number, given where the market's expectations were" before this morning's report, says Andrew Busch, global currency and public policy strategist for BMO Capital suggests putting on risk.

That healthier outlook means it's time to be risk on, so Busch recommends selling the U.S. dollar against the Canadian dollar around 0.9820 with a target of 0.9520 and a stop of 0.9920.

Busch cautions that this is a very short term trade ahead of the U.S. non-farm payrolls report. But if you think the U.S. economy is finally on the mend, he says, you might look at the loonie longer term.

"If the U.S. economy is starting to come back from the depths of despair in August, you're probably likely to go with the Canadian dollar," Busch told CNBC's Melissa Lee.

With 70% of Canadian exports going to the U.S., a stronger American economy is almost certain to send the loonie aloft, he says.

You can watch the discussion in the video clip.

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