The heat is on up north, with Canada's economy significantly healthier than that of the U.S. Here's how to trade ahead of the upcoming Bank of Canada meeting.
Between strong employment for the last two months and a robust consumer price index, "Canada is literally on fire," says Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank. She also expects a strong Canadian CPI report in the coming week.
All that solid data can mean only one thing, Bourdeau told CNBC's Melissa Lee.
"What we're looking at here is a central bank that will be slightly more hawkish than at their May meeting," Bourdeau says. As a result, she recommends going long the Canadian dollar ahead of time.
Bourdeau recommends selling the U.S. dollar against the Canadian dollar at 0.9580 with a target of 0.9350 and a stop loss of 0.9700.
Andrew Busch, global currency and public policy strategist for BMO Capital, is equally bullish on Canada even though the loonie has been strong lately.