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.


US Gas Market Poised for Supercycle: Bernstein Analysts
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms
Moldova Criticizes Russia Amid Transdniestria Energy Crisis
Urban studies: Doing research when every city is different
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift?
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays
BTC Flat at $89,300 Despite $1.02B ETF Exodus — Buy the Dip Toward $107K?
China's Refining Industry Faces Major Shakeup Amid Challenges 



