USD/CAD HOLDS GAINS NEAR 1.3850 AS CANADIAN LIBERALS FAIL TO SECURE MAJORITY GOVERNMENT
USD/CAD HOLDS GAINS NEAR 1.3850 AS CANADIAN LIBERALS FAIL TO SECURE MAJORITY GOVERNMENT
The USD/CAD currency pair has regained its intraday losses, trading around 1.3840 during early European hours on Tuesday.
The pair appreciates as the Canadian Dollar (CAD) loses ground following election results in Canada.
Prime Minister Mark Carney's Liberal Party secured a minority government in the 2025 federal elections, winning 167 seats, five short of the 172 needed for a majority in the 343-seat House of Commons.
The Conservatives, led by Pierre Poilievre, won 145 seats, gaining ground in key urban areas but failing to overtake the Liberals.
The Canadian dollar experienced minimal movement, weakening by 0.2% to C$1.3856 amid thin trading due to a Japanese holiday.
Analysts expressed concerns over the implications of a minority government, citing increased political uncertainty and challenges in passing legislation.
Carney emphasized that Canada's longstanding economic partnership with the United States was over, citing rising tensions and protectionist measures under U.S. President Donald Trump.
Trump’s threats of tariffs and suggestions of annexing Canada stirred nationalistic sentiment, benefiting Carney's campaign.
