Credit Suisse adopts a tactical cautious bias on CAD and looks to sell USD/CAD on rallies north of 1.2700.

"From a tactical standpoint, we see risks that suggest caution is warranted in picking entry levels for short USDCAD positions, ideally north of 1.2700," CS notes. 

"Housing exuberance has driven markets to expect several BoC hikes: an announcement of macroprudential measures could cause a partial retracement, as seen with the RBNZ. Also, markets see high likelihood of the BoC announcing tapering of asset purchases on 21 Apr: with Covid vaccinations lagging the US and lockdowns still in place in Ontario and Quebec, we are less certain that these expectations will realize near-term," CS adds.