MUFG Research maintains an EUR/CAD short and they're doubling down in their weekly trade of the week.
They are short the pair targeting 1.3500 with a stop at 1.4670. Spot is currently at 1.4257.
"We are maintaining a short EUR/CAD trade idea. The trade idea is to reflect widening policy divergence between teh BOC and the ECB. While the BOC did not start to raise rates thsi week, it did signal that it is likely to begin raising rates as soon as their next meeting in March," MUFG notes.
"The worst of the current COVID wave in Canada should be over by March, allowing the BOC to start raising rates alongside the Fed."
For bank trade ideas, check out eFX Plus.
