- CIBC issue new trade idea: Long USD/CAD via 3-Month Call Spread
- Strikes for the 1x1 call spread at 1.30, 1.35 for an indicative premium of USD 0.76%
- They write that "we feel that the time is nigh for a sustained push above the 1.30 mark" due to forward looking data pointing to looming global growth slowdown, Canada’s household imbalances relative to the US, and support for the USD via the haven channel.
- They expect demand for protection and liquidity will increase further which should support USD/CAD.
- On spot, they write that their conviction is that USD/CAD will be north of 1.30, but there likely won’t be enough juice to push past 1.35 in that timeframe.
- Given that USD skews are very rich, they like fading the lower delta strike.
CAD: CIBC Recommend Long USD/CAD Via Options
Last updated at:Jun-29 15:33By: Edward Hardy
FX Bullets+ 1
- CIBC issue new trade idea: Long USD/CAD via 3-Month Call Spread
- Strikes for the 1x1 call spread at 1.30, 1.35 for an indicative premium of USD 0.76%
- They write that "we feel that the time is nigh for a sustained push above the 1.30 mark" due to forward looking data pointing to looming global growth slowdown, Canada’s household imbalances relative to the US, and support for the USD via the haven channel.
- They expect demand for protection and liquidity will increase further which should support USD/CAD.
- On spot, they write that their conviction is that USD/CAD will be north of 1.30, but there likely won’t be enough juice to push past 1.35 in that timeframe.
- Given that USD skews are very rich, they like fading the lower delta strike.
