MUFG commerce of the week: We keep lengthy USD/CAD

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Final week, MUFG Analysis offered the loonie and this week they proceed to love that commerce. MUFG maintains an extended USD/CAD in its ToTW portfolio concentrating on a transfer in the direction of 1.4550, and a cease at 1.3850.

“We’re sustaining our lengthy USD/CAD commerce concept. The pair has continued to maneuver greater over the previous week rising above the 1.4200-level for the primary time since April 2020. The CAD has weakened additional after the BoC delivered a second consecutive bigger 50bps price lower as they carry charges all the way down to impartial extra rapidly,” MUFG notes.

“On the identical time, we nonetheless imagine there may be room for the CAD to weaken extra to mirror heightened commerce coverage uncertainty after Trump threatened to impose tariffs on Canada. Whereas we don’t count on vital tariff hikes to be put in place, the uncertainty ought to proceed to weigh on CAD within the near-term,” MUFG provides.

For financial institution commerce concepts, take a look at eFX Plus. For a restricted time, get a 7 day free trial, fundamental for $79 per thirty days and premium at $109 per thirty days. Get it right here.

This text was written by Adam Button at www.ubaidahsan.com.



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