Eoin's personal portfolio currency position opened
The Dollar has experienced a steep decline against a majority of currencies since the turn of the year. This has been particularly true of its decline against energy related currencies as oil prices rebounded from multi-year lows. Today’s bounce on the Dollar index and pullback in oil saw the US Dollar form an upside key day reversal against the Canadian Dollar. I opened a US Dollar long at $1.26822 in a September contract including spread-bet dealing costs.
With a short-term oversold condition evident there is scope for the US Dollar to benefit from additional short covering in the near-term. Beyond that oil prices would need to weaken further to take some of the medium-term impetus away from the Canadian Dollar.