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FxWirePro’s crude-driven FX trades well on functionality amid roaring oil bulls – Uphold for smart hedging

We’ve advocated three commodity driven FX trades anticipating upside risks of the underlying crude prices.

  1. Long a 6m 0.9450-0.9120 AUD put/CAD call spread. Paid 0.74%. Marked at 0.37%.
  2. We advocate buying USDCAD 1m debit put spreads using strikes 1.2925/1.2150 (at spot ref: 1.2577).
  3. 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:

https://www.econotimes.com/FxWirePro-Glimpse-through-WTI-and-Brent-OI-rebalancing-and-hedge-petrocurrency-via-vanilla-options-as-crude-inches-higher-range-1079140

http://www.netdania.com/Products/News/NewsStory.aspx?id=1014332%40fxWire%40NC-CM%7B%22Syms%22%3A%5B%5D%2C%22Inf%22%3A%7B%22CTR%22%3A%22us%22%7D%7D&p=fxwire_dl&s=fxWire&t=1515671001&h=FxWirePro%3A+WTI+Crude+breaks+major+resistance+and+hits+3y+highs%2C+bulls+on+verge+of+retracing+50%25+fibos%2C+minor+trend+forms+whipsaws+%E2%80%93+uphold+long+hedges+&follow=False

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.

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