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 CAD The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i Read this Term 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.

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