Danske Research maintains a bullish forecasts profile for USD/CAD targeting the pair at 1.43 in 6-months, and 1.46 in 12-months.

"The Bank of Canada (BoC) held its policy rate at 2.25% in July, judging the current stance appropriate amid two-sided risks. We expect the BoC to stay on hold through 2026 while the Fed hikes in December, leaving front-end rate differentials in favour of the USD. Markets price close to one BoC hike by YE.," Danske notes.

"We keep an upward-sloping USD/CAD profile, supported by still-wide rate differentials and our structurally constructive USD view. Near-term CAD support from higher energy prices and stretched long-USD positioning is possible but should fade as energy markets stabilise," Danske adds.