Loonie at three-month high as Canadians head to the polls
The Canadian dollar edged higher against its U.S. counterpart on Monday, hitting a new three-month high, as millions of Canadians cast their ballots in the country’s 43rd general election.
At 09:37 a.m., the Canadian dollar was trading up 0.1 per cent at 1.3114 to the greenback, or 76.26 U.S. cents, according to Reuters.
As of today, Justin Trudeau’s Liberals and the Conservatives led by Andrew Scheer are in a neck-and-neck race, according to opinion polls.
“Domestic attention is squarely on the 43rd Federal election today,” Shaun Osborne, chief market strategist, at Scotiabank in Toronto, said in a note to Reuters. “Historically, federal elections do not appear to have had a significant impact on the underlying trend in the CAD and we suspect that 2019 may be little different.
“After some noise around the vote, we think FX players will refocus attention on the Bank of Canada policy outlook, the Fed and international backdrop pretty quickly,” he said.
On Monday, trade sensitive currencies were firmer and the safe-haven greenback was slightly weaker amid fresh signs of progress in a long-awaited resolution to the U.S.-China trade war.