Morgan Stanley: buy EUR/CAD
Strategists at Morgan Stanley recommend buying EUR/CAD on pullbacks to 1.5260 with a target of 1.6200 and a stop at 1.5130.
"The combination of events around the ECB meeting last week has changed the near-term outlook for the EUR, providing an altogether more positive environment. On the other side, we maintain a medium-term bearish CAD view and continue to emphasize the need for further CAD weakness to restore competitiveness. We anticipate at least a further 8% decline in the trade-weighted CAD over coming months," MS adds.
Chart. Weekly EUR/CAD