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Core Inflation Stable as Bank of Canada and Riksbank Signal Dovish Bias
A mild miss in last week’s July inflation figures provided a bit of support for the Canadian dollar, which posted weekly gains against most other G10 currencies.

A mild miss in last week’s July inflation figures provided a bit of support for the Canadian dollar, which posted weekly gains against most other G10 currencies.

• We re-add EUR longs after taking profit today on our long EURUSD spot trade as the pair hit our trailed stop. Eurozone investors are structurally short the EUR and a potential reallocation out of US equities could help the currency.
• We think CAD shorts offers good risk-reward given sensitivity to US growth and the recent unwind in short positioning.
• Trade idea: Long EURCAD. Entry 1.5522; Target 1.62; stop-loss 1.52; total allocation USD5mn.

































































































