MUFG Trade Of The Week: Short USD/CAD
- USD/CAD is up 58 pips to start the week at 1.2625
It’s Bank of Canada week and analysts at MUFG reiterate a call for selling USD/CAD on a 50 bps hike this week.
They have a target of 1.2150 and a stop at 1.2750. Spot is at 1.2625.
“We are maintaining our short USD/CAD trade idea… The balance between the BOC hiking by 25 bps or 50 bps is a close call but the market now is positioned slightly more in favour of 50 bps and the jobs data coupled with near-term inflation risks and the opportunity to act more aggressively in sync with the FEd, we see a 50 bp hike this week,” MUFG notes.