If you are bullish crude, a good way to express it right now is via short USDNOK. Following the VAR shock in early November, hedge funds have been forced to reduce popular positions (including NOK, which was a favored reflation trade). I think the VAR shock pain is mostly done and USDNOK and EURNOK should revert back towards the lows. Both pairs look around 1% too...
Fed rate cuts taking full control of the FX board as virus disruptions start to fade - it's time to go shopping in G10 and EM FX and the intervention policies will provide some USD relief. Here looking for a rebound into previous ranges in USDRUB as a pro-cyclical currency.
A test of the previous range we were trading looks around the corner:
The spread of...