Morgan Stanley: buy USD/CAD this week
Morgan Stanley maintains two long USD/CAD positions:
- Long from 1.0734, targeting 1.1200 and with a stop at 1.0860;
- Long from 1.0650, targeting 1.1300 and with a stop at 1.0880.
According to strategists, the last week's worse-than-expected Canadian labor market repost supports the bullish view on USD/CAD: the Canadian economy is not benefiting much from the US ongoing recovery.
Sustained strength of the US figures this week could push the US bond yields higher, rendering further support to USD/CAD.
Chart. Weekly USD/CAD