The document discusses the impact of oil prices on the Canadian dollar (CAD) and provides investment strategies involving CAD. It suggests that pension funds have little incentive to change hedging ratios until oil prices rebound, which would positively impact CAD. The document recommends buying CADNOK due to Canada's diversified economy and potential for stable policy compared to Norway. It also advises selling USDCAD 1.50 strike options, noting a low probability of USD/CAD exceeding 1.50 based on historical monetary divergence. The document includes tables showing historical CADNOK values, breakeven oil prices by location, and the probability of USD/CAD exceeding 1.50.
documents/vol00010-efta01459605-pdf.pdf
{"title":"FX Blueprint: Forever Young","key_people":["Sebastien Galy"],"document_date":"2016-01-12","document_type":"tabular","key_locations":["New York","London","Canada","Norway"],"key_organizations":["Deutsche Bank"]}