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Canadian Dollar Falls as Liberals Unseat PM Harper to Win Election

Canadian Dollar Falls as Liberals Unseat PM Harper to Win Election

Talking Points:

  • Canadian Dollar Falls as Liberals Unseat PM Harper to Score Election Win
  • British Pound Looks to BOE Commentary for Rate Policy, Brexit Impact Clues
  • See Economic Releases Directly on Your Charts with the DailyFX News App

The Canadian Dollar faced selling pressure as early results showed Justin Trudeau and the Liberal Party emerging triumphant in Canada’s general election, unseating incumbent Prime Minister Stephen Harper. The selloff likely reflected uncertainty ahead of a change of leadership. Weakness may not prove lasting however considering Mr Trudeau campaigned on a proposal to step up fiscal stimulus, which may take the pressure off the BOC to cut interest rates further.

The New Zealand Dollar outperformed in overnight trade as front-end yields jumped higher, hinting at ebbing RBNZ rate cut speculation. Priced-in expectations continue to envision at least one 25 basis point reduction in the 12 months ahead however. The Australian Dollar likewise advanced after minutes from this month’s RBA policy meeting showed the central bank expects growth to have picked up in the third quarter, which probably reduced the perceived likelihood of near-term stimulus expansion.

Looking ahead, a quiet data docket is likely to see investors focus on scheduled commentary from BOE Governor Mark Carney and Deputy Governor Andrew Bailey. Both are due to speak at a hearing before Parliament’s Treasury committee. The markets will be keen to parse the two policymakers’ remarks for clues about the probability of a near-term interest rate hike as well as a preview of a study on the impact of a would-be UK exit from the EU on BOE policy.

Mr Carney will use the Cairncross memorial lecture at St Peter’s College on Wednesday to present the so-called “Brexit” report’s findings in earnest. As for policy normalization, 90-day Sterling futures are pricing in the first move higher in the benchmark lending rate at some point in third quarter of next year.


Asia Session

22:30AUDANZ Roy Morgan Weekly Consumer Conf113.3-115.6
00:30AUDRBA October Meeting Minutes---
05:30JPYNationwide Dept Sales (YoY) (SEP)1.8%-2.7%
05:30JPYTokyo Dept Store Sales (YoY) (SEP)4.9%-6.1%

European Session

06:00CHFTrade Balance (CHF) (SEP)3.27B2.86BMedium
06:00CHFExports (MoM) (SEP)--2.4%Low
06:00CHFImports (MoM) (SEP)--4.0%Low
06:00EURGerman PPI (MoM) (SEP)-0.2%-0.5%Medium
06:00EURGerman PPI (YoY) (SEP)-1.8%-1.7%Medium
06:00JPYMachine Tool Orders (YoY) (SEP F)--19.1%Low
07:00JPYConvenience Store Sales (YoY) (SEP)-1.7%Low
08:00EURECB Current Account SA (€) (AUG)-22.6BLow
08:00EURECB Current Account NSA (€) (AUG)-33.8BLow
9:00GBPBOE’s Bailey Speaks at Treasury Committee--Medium
10:00GBPBOE’s Carney Speaks at Treasury Committee --Medium

Critical Levels

CCYSupp 3Supp 2Supp 1Pivot PointRes 1Res 2Res 3

--- Written by Ilya Spivak, Currency Strategist for

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.