The clear intent to raise rates in the US alongside struggling oil prices and other factors weigh on the loonie. The team at TD marks a target:

Here is their view, courtesy of eFXnews:

The response of the USD to the Yellen and Fischer speeches will be the crucial factor for CAD. We note that despite the constructive tone of CAD since the US election our bias is to expect further upside momentum in USDCAD. We reiterate our call for a test of 1.3650 in the coming weeks.

Policy divergence remains the crucial element of this view. The BoC continues to try and drive a wedge between US and Canadian financial conditions and push back against expectations of tightening in H2. At the same time, we are cautious about reading too much into the headline strength in the GDP report. The report offered a good handoff to Q1.

However, the details showed continued weakness in business investment and exports, supporting the prospects for a pullback in growth in H2 and handicapping the BoC this year and next.