With the loonie currently hovering around 71 cents and Trump’s inauguration still two months away, Canadians are wondering just how low it might go. Here’s a breakdown of the factors working against the Canadian dollar as the so-called Trump trade — a combination of deregulation, tax cuts, and increased fiscal spending — plays out.

The Canadian dollar extended its recovery from a 4-1/2 year low against its U.S. counterpart on Wednesday as investors bet on Canada avoiding threatened U.S. trade tariffs through negotiation and looked ahead to domestic GDP data.

Prime Minister Justin Trudeau has told Donald Trump that Americans would also suffer if the president-elect follows through on a plan to impose sweeping tariffs on Canadian products