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

MUFG Analysis added an extended USD/CAD place to its ToTW portfolio concentrating on a transfer in direction of 1.4550, with a cease at 1.3850.

“We’re recommending a brand new lengthy USD/CAD commerce thought. We nonetheless see room for the CAD to weaken additional in opposition to the USD heading into subsequent yr,” MUFG notes.

“Moreover, we count on the BoC to proceed to ship one other bigger 50bps price lower subsequent week whereas the Fed has signalled that it’s contemplating slowing down price cuts additional. We count on the Fed to chop charges by 25bps in December but it surely may then skip a gathering early subsequent yr,” 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 30 days and premium at $109 per 30 days. Get it right here.

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



Source link