Morgan Stanley says it maintains a bearish skew on CAD

  • though are neutral on USD/CAD overall.
  • On the one hand, USD-positive forces remain and we think BoC pricing is at risk for a dovish correction. However, positioning has gotten a lot less long CAD and oil, and risk remains on the front foot
  • We view the opening of the US-CA border in August and international borders in September as a potentially positive growth catalyst and we will be watching those figures closely

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