Royal Bank of Scotland - "We recommend establishing short USD/CAD exposure at 1.0050, targeting 0.9700 with a stop at 1.0150..
With the new BoC monetary stance fully priced, we believe that this is the time to take advantage of a misalignment with fundamentals. In our view, there are 6 key reasons why at current levels USD/CAD looks to offer good risk/reward for a tactical short position:
1) Short-term Fair Value: (USD/CAD 5% expensive)
2) BoC Tightening Policy Outlook
3) USD debasement
4) Expansionary global monetary policy supportive of commodities
5) Cyclical support
6) US Fiscal policy"