Analysts at Westpac first recommended the trade last Tuesday
Currency strategists at Westpac argued for USD/CAD longs from 1.3238 last week and they're out with an update.
"USD/CAD's uptrend may have stalled in the last month but by the same token, and perhaps tellingly, CAD has failed to capitalise on what has been a notable bounce in energy prices," they write.
Today's trading adds to that case. Oil is up 1% but USD/CAD is also up 36 pips.
"Growth prospects remain challenged by the ongoing terms of trade shock, fiscal restraint and a lack of progress in non-commodity exports. The BoC's forecast for 2% annualised growth in H2 looks decidedly optimistic and the Bank could be forced back into action by their 2 Dec meeting and certainly no later than the end of Q1 2016," Westpac writes.
They continue to target 1.3500 with a stop at 1.3100.
Westpac analysts have one other ongoing order to buy a dip in USD/CHF at 0.9550 (spot at 0.9126) with a stop at 0.9425 and a target at parity.