MUFG Trade Of The Week: We go lengthy USD/CAD

MUFG Research added a long USD/CAD position to its ToTW portfolio targeting a move towards 1.4550, with a stop at 1.3850.

“We are recommending a new long USD/CAD trade idea. We still see room for the CAD to weaken further against the USD heading into next year,” MUFG notes.

“Additionally, we expect the BoC to continue to deliver another larger 50bps rate cut next week while the Fed has signalled that it is considering slowing down rate cuts further. We expect the Fed to cut rates by 25bps in December but it could then skip a meeting early next year,” MUFG adds.

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