Canadian dollar steady as Trudeau narrowly wins re-election
Liberal Party leader will form minority government
The Canadian dollar has remained strong following Justin Trudeau’s narrow success in the country’s general election. Losing the popular vote to the Conservatives and short of a majority by just 14 seats, Mr Trudeau will lead his Liberal Party in a minority government.
Reacting to the result, the prime minister said: “Thank you, Canada, for putting your trust in our team and for having faith in us to move this country in the right direction. Regardless of how you cast your vote, our team will work hard for all Canadians.”
The Canadian dollar has similarly been moving in the right direction. The best performing G10 currency this year, the loonie reached a three-month peak of 1.3071 per US dollar as Trudeau’s re-election became clear.
Trudeau’s premiership has not been without controversy with allegations that he interfered with the judiciary’s investigation of construction firm SNC-Lavalin and the emergence of old photographs of the prime minister in blackface.
Canada’s economy by comparison is stable and comparatively healthy; 54,000 jobs were added in the previous month alone with the unemployment rate falling to 5.5 per cent. In Q3 hourly wage growth surpassed 4 per cent.
Unlike other developed western countries, Canada’s central bank has not yet resorted to an easing of monetary policy. The Bank of Canada has maintained its benchmark at 1.75 per cent, citing a healthy economy and manageable inflation.