This Friday will bring the last jobs report before the election - and a currency trading opportunity.
The seemingly endless presidential election is almost over, but not without a last nonfarm payroll report to possibly shake things up. Economists are expecting about 120,000 new jobs to have been added, and they see the unemployment rate ticking up to 7.9%.
That shouldn't have a major effect on the election, says Andrew Busch, global currency and public policy strategist at BMO Capital Markets. "It's not really going to change a lot of people's minds unless it goes to 7.7%," he says, at which point President Obama might win over some more voters in Ohio.
For currency traders, though, the report could create a nice trading opportunity, according to Brian Kelly of Shelter Harbor Capital. If the report comes in as expected, "then everybody will start to think about whether we're going to have bigger QE," he told CNBC's Melissa Lee. "The Fed has now targeted the unemployment rate."
So Kelly thinks there is a currency trading opportunity based on a shift in risk appetite. "If you get into a risk-on type of market," with investors considering a possible increase in quantitative easing, "you want to buy the New Zealand dollar," he says.