While Canadian PM Trudeau managed to lead his Liberal Party to victory with a projected 157 seats in the next Canadian Parliament, it fell short of the 170 required to hold onto a majority. The most likely outcome will be a minority government by Trudeau’s Liberal Party which would represent a weaker governing position than before. The Conservative Tories, led by Sheer, are projected to have secured 121 seats, up 22 seats as compared to their previous 99 seats while also winning the popular vote.

While many analysts fret over the US Federal Reserve and if or when they will cut interest rates, many tend to ignore the Canadian Dollar and its 4% rally this year. The Canadian Dollar is a commodity currency due to its heavy dependence on commodity exports. This is the reason why the rally this year is even more impressive as during a global economic slowdown, demand for commodities remains depressed which results in lower prices.

The Canadian Dollar has stopped its massive sell-off over the past few weeks and was stuck in a narrow trading range especially against the US Dollar. The USDCAD was unable to breakout above 1.2834 and unable to breakdown below 1.2351.