The Canadian dollar reversed its course following the Fed's interest rate decision, seeing its greatest daily appreciation in a year but such gains are likely to fade in the near-term, says CIBC World Markets Research.

"Look for Governor Poloz to retain a dovish tilt in April, especially given that Trump-related risks have yet to be resolved," CIBC argues.

As such, CIBC argues that a few months the stronger post-Fed loonie will likely look like just a 'flash in the pan' on the way to an even weaker exchange rate.

CIBC targets USD/CAD at 1.36 by the end of Q2, and at 1.39 by the end of Q3.

Source: CIBC Economics - CIBC Capital Markets, efxnews.