Analysts at CIBC say USD/CAD will hit 1.36 by year end

CIBC expects to see further USD/CAD strength from current levels around 1.3250. They say CAD "is out of timeouts and won't be able to stop the steady march downfield toward further depreciation this year. With Norway cutting interest rates last week, the market's focus has returned to the challenges facing oil exporters."

They say out could bounce but headwinds will hit with the Federal election on October 19. It's a three-way race and will add uncertainty.

They say the weak currency will eventually help boost the economy and USD/CAD will top sometime early in the year.

"CAD will also benefit from higher trade volumes with the US, given the lagged effects of the exchange rate's depreciation. But, the support from trade doesn't end there. A brighter global growth picture led by ongoing momentum in the US and a healthy recovery in the euro area will boost trade volumes around the globe. Look for CAD to begin the year around 1.36 versus the greenback, but gradually trend toward 1.28 by the end of 2016," economists at CIBC write.