EUR/CAD is up today but still trading near a five-year low at 1.4256. MUFG thinks it will fall further and recommends selling the pair with a target of 1.3500 and a stop at 1.4670.
"We are recommending a short EUR/CAD trade idea. We believe that fundamentals remain supportive for a stronger CAD," MUFG notes.
"The Canadian dollar is not yet fully reflecting recent improvement that has taken place in the price of oil and the widening of yield spreads in favor of Canada. It leaves scope for further upside for CAD in the near-term," MUFG adds.
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