Liberals secure fourth term; Carney becomes PM – Danske Bank
Early this morning, Canada's Liberal Party secured a fourth consecutive term, with Carney elected Prime Minister, as widely expected, Danske Bank's FX analysts report, Danske Bank's FX analysts report.
Carney’s experience and stance on Trump boost appeal
"At the time of writing, Liberal candidates have been elected in 150 of 343 seats. However, it is still too soon to ascertain whether the Liberals will form a majority government, with the threshold for a majority at 172 seats."
"Carney's triumph is largely driven by his experience as a policymaker, which reassures voters of his ability to guide Canada through a shifting global landscape, and by the perception that he is best suited to confront Trump, in contrast to his Conservative counterpart, Poilievre."
"The market reaction has been fairly muted, as this outcome was largely priced in, with tariff uncertainty and the global investment environment acting as the main drivers of the cross currently. In the near term, we expect USD/CAD to tick down to 1.37, given stretched short CAD positioning."
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FXStreet Insights Team
FXStreet
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