NEW YORK ( TheStreet) -- As markets digest new information in the coming weeks, volatility will continue.This week, investors will look to nonfarm payroll data. With so much being tied into the U.S. employment situation, the level of job growth reported could determine whether monetary tightening in September is more or less appropriate. Also, this week, the Bank of England and European Central Bank will hold meetings, and along with the U.S. jobs report, will prompt heavy trading volume as central banks have played such an important role in influencing the directions of markets this year that keeping an eye on currency markets is essential. The first chart below is of PowerShares DB US Dollar Index Bullish ( UUP) over CurrencyShares Euro Trust ( FXE). According to a Reuters survey asking when the Fed will tighten easing measures, more than half of the economists polled stated September.
In the chart below, the curve has already begun to fall back toward its trend line. If nonfarm payroll numbers disappoint this week, look for this pair to fall more and the curve to flatten considerably.
The last chart is of Guggenheim S&P 500 Equal Weight ( RSP) over SPDR S&P 500 ( SPY). This pair represents market breadth in the S&P 500, the level of participation during equity index moves. As the pair rises, it signals that a majority of the stocks in the index are moving higher as well. U.S. equities remain the most attractive stocks in the world , which means that if equity markets as an asset class move higher, this pair should lead the way. At the time of publication the author had no position in any of the stocks mentioned. Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.