MUFG trade of the week: Sell EUR/USD and stay long USD/CAD

MUFG Research is holding two trades in its portfolio this week, adding EUR/USD shorts and maintaining a long position in USD/CAD as it tests the highs of the year.

The new EUR/USD trade is from spot with a target of 0.97 and a stop at 1.04. That would be a quick move through parity, perhaps running stops.

“We are recommending a short EUR/USD trade idea to reflect our stronger conviction that the pair will soon break below parity,” MUFG notes.

We are maintaining a long USD/CAD trade idea to reflect the increasing risk that the  CAD  will weaken further in the near-term on the back of intensifying fears over a sharper slowdown in global growth.

The target in trade was 1.3400 with a stop at 1.2600.

For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.