The Canadian loonie reacts from the recent news about Canada’s 2019 election. The CAD and its futures traded in negative regions this Tuesday despite receiving a boost from the election yesterday.
Voters from all over the country finally voted on Monday following a very narrow campaign period. Polls about yesterday’s election showed tight figures as to who will come out triumphant according to reports.
The US greenback to Canadian loonie trading pair rose 0.08% or 0.0010 points in today’s trading session. The USD to CAD exchange rate is currently around CA$1.3095, slightly climbing higher from its last close of CA$1.3084.
Meanwhile, the Canadian dollar futures slipped lower by 0.07% or 0.0005 points in today’s trading.
After’s yesterday’s boost, the Canadian loonie received support yesterday after news broke out that Justin Trudeau won again. The 47-year-old Canadian politician won his second term in as the country’s Prime Minister.
Normally, elections mean uncertainty for the outlook of a respective currency over the likely economic policies in subsequent years for that country. The effect eventually leads the currencies to weaken during and after the election.
However, in the case of the Canadian loonie, it was different. The CAD’s prior strength came from the fact that both parties’ economic platforms are remarkably similar.
Liberal Party politicians were expected to win at least 157 seats, just 13 members short of a majority. As of this moment, the Liberal Party of Canada has successfully secured 110 seats in the preliminary results.
There are currently 224 sure wins out of 338 seats. Its competitor, the Conservative Party of Canada, clinched 79 spots.
The Canadian loonie didn’t run wild as expected, its gains were capped due to the striking resemblance of the parties’ platforms.
An analyst said compared the two side’s plans and got s similar result; a slight support in the country’s economic growth in 2020.