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Currencies on the move as the oil price falls

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As crude fell to a four year low this Friday following news that OPEC won’t cut oil production, currencies too are on the move. Saxo’s John Hardy points to the Russian Ruble which has hit a new low for the cycle. 

He says the Norwegian Krone is also at a five year low verses the US Dollar. Hardy points out that the NOK becomes a petro currency when the price of oil is on the move. The Mexican Peso is also at a weak level verses the dollar and the Canadian Dollar has also reacted negatively.

The other commodity that is likely to move the Foreign Exchange markets is Sunday’s gold referendum in Switzerland. It’s calling for the Swiss National Bank to hold 20% of gold in its reserves at all times. Hardy believes the result will be a resounding no but he expects to see the EURCHF rally. However, he says, expect that to be short lived, unless the SNB starts ‘innovating’.