On the crosses

Posted by Scriptaty | 1:03 AM

In recent weeks, the Canadian dollar appreciated significantly vs. the Euro, as Euro/Canadian dollar (EUR/USD) has moved from the $1.60 area in May to $1.50 in mid June. Traders looking for opportunities on the crosses may want to consider a short Euro/long Canadian dollar play, given the struggling economic picture seen in the Euro zone, according to Jamie Coleman, managing analyst at IFRForex Watch.

“Sell strength toward $1.56, with a target at $1.49 and then $1.42,” he says. Coleman actually called buying the Canadian dollar vs. the Euro (rather than the U.S. dollar) “a safer plan because the U.S. dollar will continue to strengthen.”