FX.co ★ Canadian Dollar Falls as Election Results Awaited

The Canadian dollar weakened to approximately $1.39, relinquishing gains from the previous session as investors awaited the final election results, with US tariff concerns impacting the political narrative. Initial forecasts indicated that Canada’s governing Liberal Party might maintain authority, though definitive outcomes were still pending. The Liberals had yet to secure the 172 seats necessary for a majority in the 343-seat House of Commons. Mark Carney’s quest for a more robust mandate to manage US tariffs encountered resistance from an unexpectedly strong Conservative challenge. This raised the prospect of a minority government that may have to negotiate for policy support, a scenario that historically curtails the duration of Canadian administrations. However, the decline in the Canadian dollar was somewhat offset by a renewed dip in the US dollar, influenced by ongoing uncertainty regarding US-China trade relations.