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Saturday, 23 June 2012

2012.06.22 19:04:31 MARKET TALK: Sell the Oil Currency Proxies -Deutsche

13:04 EDT - Until now, FX has seen only minimal reaction to the 30%
selloff that Brent crude has seen in the past three months, Deutsche
Bank notes. The bank advises selling, as a mean-reversion trade, CAD,
AUD and NOK against currencies most inversely linked to crude prices:
JPY, GBP and USD. It remains fond of NOK/SEK, to the downside, with
lower oil prices "but reduced global tail risks favoring the latter
over the former," Deutsche Bank's George Saravelos says in a note.
(karen.johnson@dowjones.com)


(END) Dow Jones Newswires

June 22, 2012 13:04 ET (17:04 GMT)

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