In the midst of the latest updates of the Canadian election, CTV News announces that the liberal party led by Mark Carney is forming a minority government.
According to CTV News, Liberals had won 343 liberation 156. Conservatives of Pierre Poilievre must remain opposed, so far there are 144 exemptions. The parties need 172 seats to form a majority.
Market reaction
USD/CAD jumps back to 1.3850 near the Canadian Dollar (CAD) loses the likely liberal minority to government.
Canadian dollar
Canadian dollars (CAD) leading factors are the level of interest rates in the Canadian Bank (BOC), oil price, Canada's highest export, economic health, inflation and trade balance, which is the difference between Canadian export value versus its imports. Other factors include market-state investors accept more risky assets (risk-on) or looking for safe havens (risk-field)-CAD positive. As its largest trading partner, the health of the US economy is also a key factor that influences Canadian dollars.
The Canadian Bank (BOC) significantly influences Canadian dollars by setting the level of interest rates that banks can borrow to each other. This affects the level of all interest rates. The main purpose of BOC is to maintain inflation of 1-3%by adjusting interest rates up or down. Relatively higher interest rates tend to be positive about CAD. The Canadian Bank can also use quantitative alleviation and tightening with the former CAD-negative and CAD-positive CAD positive.
Oil price is a key factor that affects the value of the Canadian dollar. Oil is the largest export in Canada, so oil prices tend to affect the value of CAD immediately. In general, as the price of petroleum rises, the CAD rises, the total demand of the collection is increased. If the price of oil falls, the opposite is the opposite. Higher oil prices also cause a higher positive trade balance, which also supports CAD.
If inflation was traditionally considered to be a negative factor in the currency because it lowers the value of money, the opposite has been the opposite of the relaxation of cross -border capital controls today. Higher inflation tends to set up interest rates in central banks that attract more capital inflow to global investors looking for a profitable place to keep their money. This increases the demand for the local currency, which in Canada is Canadian.
Macroeconomic data releases the health of the economy and can affect Canadian dollars. Such indicators such as GDP, production and service PMI, employment and consumer emotion studies can all affect the CAD direction. A strong economy is good for the Canadian dollar. Not only does it attract more foreign investment, it can encourage Canadian bank to put interest rates that lead to a stronger currency. If economic data is weak, CAD is likely to fall.
When the polls were closed in Canada, early results showed that, according to CBC News, the dominant liberal party federal elections won.
Mark Carney keeps his work as Prime Minister, CBC News predicted, noting that it is too early to say whether he has prepared most or minority government.
Liberals accounted for more than 50% of the vote followed by a conservative party, the proportion of votes 38.6%,
