💶🔻 Recommend Selling EUR/CAD Via Options: CIBC FX Strategy
- Rosbel Durán
- Dec 9, 2022
- 1 min read
EUR/CAD has moved too far to the upside, and has become overvalued. A fair value proprietary model ticks 4% below current spot levels
The pair is, technically, most overbought since March 2020 and that speculative long positioning in corresponding futures is exaggerated; drop to 1.3638 area is “doable” over coming months
Recommends selling the pair via a three-month, 15-delta euro put/loonie call. Using spot reference of 1.4320, purchasing a 1.3810 strike would cost about 0.33%.
-CIBC FX Strategy
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