JP Morgan likes to stay short CAD in the near-term.

"The ceasefire agreement between the US and Iran has weighed on the dollar, bringing USDCAD back below 1.39. While positive, we don’t think this is enough to offset the headwinds facing the Canadian economy, so we are staying short CAD here, encouraged by the fact the currency continues to underperform on crosses," JPM notes.

"Flow-wise, systematics returned to selling CAD after a break over the long weekend. The 200d at 1.3816 is the level to watch below," JPM adds.