Wednesday, August 24, 2016
Recent large oil price swings due to speculation over whether the Organization of Petroleum Exporting Countries will agree an output cut or freeze argue against trading oil-linked currencies, except against each other, Morgan Stanley says. "We prefer not to trade oil currencies outright at the moment due to the wild swings created by headlines from OPEC members suggesting they could look for a production freeze," says Morgan Stanley. Its preferred trade in these currencies is to short CAD/NOK. CAD/NOK on Wednesday hit a one-week low of 6.3323. A move below the Aug. 11 low of 6.3028 would mark its lowest level since June 6.