forex Implication of Canadian’s Election on USD/CAD

[Anzo Lim 0]

The Canadian federal election concluded with a narrow victory of Justin Trudeau, the incumbent prime minister, but he faces challenges as he’ll have to lead a minority government which relies on support of other parties. The result is mostly in line with pre -election estimation, as previous polls suggests neither the Liberal Party led by Trudeau or the Conservative Party led by Scheer has enough support to win the election with majority, and a coalition with smaller parties is more likely.

 

Although data in overall economy and employment looks fine, Canadians are complaining over slow-growing wages, unaffordable housing and increasing mortgage pressure. In addition, carbon tax has also hurt consumers in certain provinces. The Liberal government pledged to strictly adhere to the budget, but the government’s deficit reached 20 billion Canadian dollars by the end of Trudeau’s term, and it’s expected that Canada won’t return to a balanced budget until 2040 at least.

 

Daily pivot points for USD/CAD: 1.3096---1.3110

 

S1: 1.3068                R1: 1.3124

 

S2: 1.3047                R2: 1.3156

Source: WikiFX App