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.


U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge
European Stocks Rally on Chinese Growth and Mining Merger Speculation
Robinhood Expands Sports Event Contracts With Player Performance Wagers
Global Markets React to Strong U.S. Jobs Data and Rising Yields
JPMorgan’s Top Large-Cap Pharma Stocks to Watch in 2026
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 



