USDNOK looks high vs. crude oil

If you are bullish crude, a good way to express it right now is via short USDNOK. Following the VAR shock in early November, hedge funds have been forced to reduce popular positions (including NOK, which was a favored reflation trade). I think the VAR shock pain is mostly done and USDNOK and EURNOK should revert back towards the lows. Both pairs look around 1% too high to me based on simple fair value vs. oil. S&P 500 and gold at the highs add to the logic.

bd

This is for your information only. Not trading advice. Trade your own view at your own risk.