A bearish skew on CAD, neutral on USD/CAD – Morgan Stanley

Analysts at Morgan Stanley offer their medium-term view on USD/CAD, as they remain bearish on the Canadian dollar.

Key quotes

“We maintain a bearish skew on CAD, although 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.”