Thursday, August 25, 2011

J.P.Morgan recommends avoiding loonie

Currency strategists at J.P.Morgan claim that once one is bullish on oil, all he needs is to choose which currencies of oil-producing nations to trade.

The specialists warn that it’s necessary to be very cautious with Canadian dollar as its dynamics is strongly correlated with the moves of S&P 500 Index. So does Mexico's peso and Russian ruble.

As a result, the best choice for such traders is Norwegian krone.

daily usdcad 17-01

Chart. Daily USD/CAD

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