If any one is keeping score the BOJ no cut, RBA 25 basis point cut with the BoE meeting on Thursday where we expect nada. Crude was down 5% today and without a bullish inventory report tomorrow prices look poised to revisit $45. Asssuming the H/L ytd a 61.8% Fibonacci retracement in May is $45.40. [...]
Expect the BOJ to hold rates at 0.10% and the RBA is more of a wilcard..cut of 25 basis points factored in. In terms of the trade we expect the Euro & Pound to move lower and the Loonie higher. Much of this will depend on if the dollar pushes higher or trades below 84 [...]
2 Central banks have spoken, still BOE and ECB meet on Thursday. We are long the Loonie via a futures and options combination and long the June yen via 4 cent call spreads. 89.74 is the contract high in dollar index; current prcie 89.05. Oil continues to carve out a bottom as does natural gas. [...]
As of this writing the Aussie has taken off like a possessed kangaroo up virtually 4% today back above .6500 in March.We are fighting back with March longs in options and futures. Additionally in currencies we like the Loonie to the upside. We are pricing out 3 cent call spreads on the March yen but [...]
