Danske Research discusses USD/CAD outlook and targets the pair at 1.25 in 3M, 1.26 in 6M, and 1.27 in 12M

"USD/CAD has been trading in close tandem with (reverse) EUR/USD over past months. We expect this pattern to continue and still regard USD/CAD as a low beta version of USD/NOK," Danske notes.

"Consequently, we expect the cross to move lower in coming quarters before modestly rebounding on renewed USD strength," Danske adds.