Is it a good time to go long on the Canadian dollar? Citi's Steven Englander seems to think so in his update of the firm's "overlay portfolio," a paper portfolio that is used to advise FX-minded clients.

Englander says that the Canadian dollar is beginning to look attractive during periods when risk appetite is high, while the loonie is also boosted by the "unattractiveness of G4 currencies as diversification instruments."

Any impact the Canadian dollar could have in risk adverse situations is protected by its links to the US dollar, he adds.