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."