USD/CAD: Focus on the USD side of the equation - Morgan Stanley

Dhwani Mehta FXStreet

Analysts at Morgan Stanley are out with their strategy for trading USD/CAD pair in the next three months.

Key Quotes:

“USDCAD is an expression of the USD view and less about the CAD side.

Assuming that the broad USD index starts falling from now, 2-3-month at-the-money USDCAD puts … become a cheap way to play for the weaker broad USD, with positive P&L if USDCAD is below 1.3150 and 1.3110 in two and three months, respectively.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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