CADJPY View!

The risk around Friday's US non-farm payrolls number is to the downside and sales of

CADJPY
are likely to be the most interesting and more rewarding trades in this scenario, according to Spectra Markets' Brent Donnelly.

"I don't think there is a major skew to FX or bond positioning going into NFP. Both USD bulls and USD bears continue to dabble tentatively, and then get rinsed. Over and over," said Donnelly, president at Spectra Markets and a veteran FX trader.

"With big picture carry momentum halted by the MXN move, and yields already softening substantially this week, the downside in CADJPY and USDJPY on a weak release are most interesting. CADJPY looks 200 points too high to me," he added.