MUFG trade of the week: Buy USD/CAD

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MUFG Research recommends buying USD/CAD in its weekly top FX pick. The firms says to buy the pair at spot with a target of 1.3420 and a stop at 1.2600.

“We are recommending a long USD/CAD trade idea to reflect our view that the USD will extend its rebound in the coming weeks, ” MUFG wrote.

“Unlike the US labor market, there ahve been clearer signs of a slowdown in hiring in Canada. Employment has contracted for two consecutive months in June and July which supports our view that the Fed will tighten policy further than the BOC.”

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