We buy British currencies for two reasons. First, there is a decrease in interest rates on dollar loans on the interbank lending market, which will have a negative influence on the value of the American currency.

Secondly, a bullish rally in the oil market will provide additional support for the British currency, inasmuch as assets have been historically correlated with each other. US money market funds have accumulated $4.5 trillion in cash, which is favorable for the oil market, insofar as oil drawdowns will be bought out quickly against the background of excess liquidity from investors. On Monday we saw how oil quotes renewed a two-week minimum, inasmuch as now prices are again above the psychological level of $70 per barrel.

Trading recommendation: Buy 1.3810/1.3780 and take profit 1.3880.