Time to sell USD/CAD - a new macro trade - JP Morgan

This via eFX

JP Morgan added a short USD/CAD position to its macro portfolio. The following is JPM's rationale behind this call along with the details of its trade.

"The rise in Canadian oil prices is even more significant than the move in global prices due to the narrowing of the WCS-WTI spread to its tightest level since mid-2013 ($11). All in, therefore, WCS has now increased by 50% from the mid-March low of $30 p/b," JPM argues.

"Aside from this, we prefer CAD over other petro-currencies due to 1) valuation (less overvalued than RUB, and relatively more attractive than NOK since this is already showing up as expensive relative to EUR and SEK) , 2) positioning (specs are now outright long RUB, they remain short CAD), and 3) a more neutral economic narrative from the BOC and firming core inflation to a six-year high, both of which cast doubt on whether the follow-up rate cut which the bill curve discounts," JPM adds.

In line with this view, JPM entered a short USD/CAD position from 1.2210 with a stop at 1.2430 and an open target.

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So CAD, hot or not? We know what JPM say (thanks to eFX, they have more bank research and recommendations at the link), but what say ForexLive traders?