Morgan Stanley says its best trade idea this week is to stay long USD/CAD.
“With Canadian payroll growth averaging roughly 7.5k per month this year (equivalent to 75k in terms of US payrolls) compared to 230k per month in the US, our view of Canada not benefiting much this time round from a US economic recovery is further reinforced,” they say.
Morgan Stanley maintains a two long USD/CAD positions from 1.0734 and 1.0650 targeting 1.12 and 1.13. They’ve moved up their stops to 1.0860 and 1.0880.
