Credit Suisse maintains a neutral bias on USD/CAD in Q2.

"Immigration remains CAD’s saving grace. Ongoing population growth is likely to keep aggregate demand supported (possibly for housing too), while at the same time undermining the risk of a price-wage spiral forcing the BoC into more rate hikes. For this reason, we are inclined to think that the poor housing market data only tell part of the story for CAD. And are also somewhat skeptical of the very weak consensus around Q2 GDP data," CS notes.

"All in all, this leaves us neutral CAD vs the USD. Against currencies backed by hawkish central banks, we think CAD has still scope to underperform," CS adds.