Analysts at Morgan Stanley expressed their bullish take on the Canadian dollar, recommending short positions in the EUR/CAD cross.

Key quotes

"We recommend investors position for continued CAD gains on crosses. October labor market data affirmed a positive trajectory in Canadian payrolls; we estimate that only 120k jobs remain to be filled to achieve the full labor market recovery the BoC is looking for to gauge progress toward sustainable closure of the output gap."

"CAD trades well below levels implied by the recent rise in oil prices and yield differentials, a relationship we expect to recouple as the COVID-19 crisis fades and USD's strong negative correlation to risk appetite continues to decline. We recommend short EUR/CAD positions, targeting 1.35." 

• EUR/CAD Price Analysis: Hovers around 1.4425 failing to break resistance at 1.4460