The Canadian dollar had a strong initial reaction to Trump’s prospects of winning and its depreciation could certainly continue. Here is the view from CIBC:

Here is their view, courtesy of eFXnews:

Donald Trump’s surprise election win in the early hours of Wednesday morning wasn’t met with the sort of reaction most, including us, were expecting in FX markets. Yes, the US$ sold off initially on the surprise. But that move lasted only a matter of hours.

By the time the win was conceded formally by Hilary Clinton, the C$ was down against the greenback. And not because of concern regarding trade or higher odds being placed on a BoC rate cut. Instead it was due to broad US$ appreciation, with the greenback not only up against risk-sentiment driven commodity currencies, but also the euro and safe havens such as the yen and Swiss franc.

With the US$ gaining extra unexpected traction, we are on our way to hitting our 1.39 Q1 target for USDCAD.