Analysts at Rabobank explained that since the US election on November 8 the CAD has rallied 1.8% vs. the USD mostly on the back of the improvement in oil prices though better than expected domestic jobs data and trade data have also brightened the outlook.
"The rally in the CAD compares with a 15.5% drop in the MXN in the same period. Although the CAD gains are less significant than some other oil related currencies such as the RUB, it has outperformed the NOK substantially in this period. Despite the encouragement afforded by recent Canadian economic data, in our view the CAD is vulnerable to Trump related political threats. We see current levels as an opportunity to buy USD/CAD with a view to the currency pair moving back towards the 1.35 level in the coming months."