Flash: Iran deal and Oil shift leads morning FX moves – BMO Capital Markets

FXstreet.com (Barcelona) – Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets notes that the morning session in London is largely summed up by the Iran ‘nuclear accord’ and the corresponding move in oil prices.

Key Quotes

“Monetary policy divergence bets were also apparent, but mainly in the EUR. GBP/NOK and NOK/SEK were ‘where the money was’.”

“As for the oil price impact, the rally in CAD/NOK (i.e. CAD outperformance) for most of the morning emphasizes a theme mentioned last week, which was that the market was already quite short of the CAD heading into the October CPI …read more