Canadian dollar (CAD)As noted in our recent insight, the CAD has lagged G10 crosses. We think the CAD’s underperformance on broader crosses will continue, given that a weaker USD environment often results in a weaker CAD performance broadly.The BoC’s meeting is the major domestic event this coming week. Recent price action suggests BoC meetings are rarely positive for the CAD, with its dovish tones lifting the USD/CAD following recent meetings.US tariff risks and ongoing softness in the Canadian economy will keep a lid on CAD appreciation for now. However, the slightly stronger April CPI (with trimmed mean and core median measures rebounding over 3% y/y) may mean a repeat of price action around the April 2025 BoC meeting, where a hold saw temporary USD/CAD downside.Though the BoC is likely to empathise growth risks, a turn to a cautious approach may help USD/CAD consolidate under 1.38 (a 25bp cut is currently ~30% priced). Medium term, we see scope for a lower USD/CAD as USD strength moderates going forward.