We’ve advocated three commodity driven FX trades anticipating upside risks of the underlying crude prices.
- Long a 6m 0.9450-0.9120 AUD put/CAD call spread. Paid 0.74%. Marked at 0.37%.
- We advocate buying USDCAD 1m debit put spreads using strikes 1.2925/1.2150 (at spot ref: 1.2577).
- Aggressive bears, deploy 1m USDCAD ATM -0.49 delta puts as CAD rates recently climbed above USD rates for the first time since 2014, and our USD rates projections can realistically drag the USDCAD to 1.20.
For more details, refer to the below weblinks:
Amidst crude oil bulls are lingering at 3-year highs (refer above chart) as falling U.S. crude supplies provide support, the above trades seem to be performing as the underlying currency pairs are moving in tandem with the energy prices. The U.S. EIA reported in its weekly report yesterday that crude oil inventories dropped by 4.9 million barrels that opens the room for new entrants in these trades.


Stock Futures Dip as Investors Await Key Payrolls Data
Energy Sector Outlook 2025: AI's Role and Market Dynamics
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures
Bank of America Posts Strong Q4 2024 Results, Shares Rise
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One
Ukraine’s drone strikes are having an impact on Russia — but Russian leaders remain committed to war
China’s Growth Faces Structural Challenges Amid Doubts Over Data
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand
Global Markets React to Strong U.S. Jobs Data and Rising Yields
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 



