Short EUR/CAD Positions Favored By Rabobank

Rabobank analyst Jane Foley says the loonie continues to find support from EUR diversification trades. At the end of 2011 CAD was near the bottom of the performance table of G10 countries year to date, but this weakness has been helping support growth in Canada and should act as a buffer against headwinds from the euro zone. Foley says better U.S. growth should also stimulate demand from Canada's main export partner. EUR/CAD now trades at 1.2925, and Foley is targeting the January 2011 low of 1.2760.