USD/CAD: Go short on the Loonie ahead of the OPEC meeting - Barclays

In the view of Barclays Capital FX Strategy Research, the resource-linked Loonie may end the week lower, in the wake of the OPEC outcome, along with Canada's Q3 GDP and November employment reports.

Key Quotes:

"OPEC could disappoint market expectations and Canada's GDP is likely to show a slower pace of activity in Q3. A lower-than-expected GDP print could weigh on the Loonie, as the BoC counts on broad and sustained growth to yield price pressures. We forecast quarterly GDP to have slowed to 0.60% q/q annualized in Q3 (previous: 4.5%), bringing total annual growth down to 2.84% y/y."

“Recommend being long USD/CAD from 1.2696 as its trade for this week, targeting 1.2890 with a stop of 1.26 (above the 100-day moving average) for a reward-to-risk ratio of 2:1.”