With currency investors' risk appetites improving, this strategist sees an opportunity up north.
Amazingly, Europe has generated some positive news in the past few days, and for risk-on currencies, that's a good thing. But not all have benefited equally, says Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank.
"The Canadian dollar lagged the move stronger that we saw in the commodity currencies," she told CNBC's Scott Wapner. That's one reason Bourdeau views the loonie as a better play on risk sentiment than the euro.
She also thinks risk-on sentiment will hurt the U.S. dollar against the Canadian dollar, especially with a U.S. nonfarm payroll report due Friday on the heels of some better-than-expected economic reports.
"Typically when there is strong U.S. data in this environment, that has pushed risk-seeking sentiment higher," Bourdeau says. That would translate into a weaker U.S. dollar relative to its northern neighbor.
Bourdeau wants to sell the dollar against the Canadian dollar at 1.0170 with a stop at 1.0255 and a target of 1.0000.
You can watch the whole discussion on the videotape.
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