Crude looks like it wants to correct lower. There is high correlation with CAD and NOK. We hit a nice trade with EURCAD and EURNOK based on this analysis. Current GBPCAD also looks extremely attractive. Based on this analysis and how it correlates to GBPCAD (CAD crosses in general) has made us look into possible trades that relate well to this thesis. Will this have a negative impact on overall risk? We are not 100% sure of that, and think risk could rally with crude headed lower. Current valuations give us pause and force us to dig a bit deeper on our analysis. We will look for proper risk reward levels to get long GBPCAD. Stay tuned.
