FXStreet (Barcelona) – With the oil market having tested the topside of its USD 56-63 /bbl range, any upside break would generate a better short-term reaction, and further suggests short EUR/NOK and AUD/CAD remain better trades into this view, as explained by Kit Juckes of Societe Generale.
Key Quotes
“Oil prices have traded (in WTI terms) in a USD 56-63 range since the end of April, and after testing the bottom of that range as recently as Friday, we tested the top yesterday.”
“A lot of the FX market is blindly following the oil price, not least because a year ago the price was USD 94 and the forecast for Q2 2015 was for little change. To the extent that we would get a bigger short-term reaction to a break higher than to a slide back to the middle of this range, there’s value in short EUR/NOK and short AUD/CAD today.”
(Market News Provided by FXstreet)