The [URL deleted] Canadian dollar held onto near a three-month high on Tuesday as the markets calmly anticipated Liberal government re-election. However, investors worried about its need to rely on a left-leaning opposition party for support.
The Liberals will form a minority government after a Monday’ tight election. Elections Canada shows in its latest tally that Liberals had won and leading in 155 out of 338 seats.
A minority government leaves Justin Trudeau- the Canadian Prime Minister, in a weakened position. Therefore, he will rely on New Democrats’ (NDP) support to push through critical pieces of legislation.
Karl Schamotta- director Global markets strategy at Cambridge Global Payments said the weak position would likely drag the Canadian dollar. The Canadian dollar would otherwise ride on robust economic data, improving risk appetite, and favorable interest rate differentials.
The Canadian dollar traded nearly stable at 1.3082 to the USD. Signs of progress towards a US-China trade dispute resolution boosted the currency. The Canadian dollar also notched its most robust intraday levels since July 22 at 1.3071.
This year, the loonie has been the top-performing G10 currency – up more than 4% against the USD.
The Liberals will form a minority government after a Monday’ tight election. Elections Canada shows in its latest tally that Liberals had won and leading in 155 out of 338 seats.
A minority government leaves Justin Trudeau- the Canadian Prime Minister, in a weakened position. Therefore, he will rely on New Democrats’ (NDP) support to push through critical pieces of legislation.
Karl Schamotta- director Global markets strategy at Cambridge Global Payments said the weak position would likely drag the Canadian dollar. The Canadian dollar would otherwise ride on robust economic data, improving risk appetite, and favorable interest rate differentials.
The Canadian dollar traded nearly stable at 1.3082 to the USD. Signs of progress towards a US-China trade dispute resolution boosted the currency. The Canadian dollar also notched its most robust intraday levels since July 22 at 1.3071.
This year, the loonie has been the top-performing G10 currency – up more than 4% against the USD.
Last edited by a moderator:
