Canadian Dollar Strengthens as Markets Bet on Hillary’s Victory

The Canadian dollar gained on its major counterparts as market participants were speculating about the possible outcome of the US presidential elections. Economic data released from Canada over the trading session was not great, but it took the backseat to the US elections.

At the present time, it looks like Democratic candidate Hillary Clinton leads in the presidential race. Markets welcomed this as they prefer her over Republican candidate Donald Trump as Hillary represents stability while Trump represents uncertainty. Currencies of US trading partners (like the Canadian dollar and the Mexican peso) react especially strongly to the news about the elections as traders are concerned that Trump’s victory may lead to severed trading ties between the United States and their neighbors.

As for Canada’s macroeconomic indicators, building permits sank 7% in September from August, more than analysts had predicted (5.6%). The monthly seasonally adjusted annual rate of housing starts was at 192,928 units in October, down from 219,363 units in September.

USD/CAD dropped from 1.3362 to 1.3301 as of 20:57 GMT today, lowest since October 25. EUR/CAD declined from 1.4751 to 1.4651. CAD/JPY jumped from 78.13 to 79.02, hovering at the highest level since October 19.

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