Credit Suisse Research maintains its call for modest USD weakness in Q2.

"We think the muddled input signals from the rates market and the ever highly uncertain global growth outlook are key culprits for this mixed price action. The net result is that rates and FX markets appear to be in somewhat of a holding pattern, with the well-established priced-in view that the Fed will start to cut rates well ahead of peer central banks keeping the USD subdued," CS notes.

"For the time being, we do not see a strong reason to deviate from our call for modest USD weakness in Q2, or to change our key end-Q2 targets of EURUSD 1.1250, USDJPY 125.00, GBPUSD 1.2650 and AUDUSD 0.6600," CS adds.