The Canadian dollar weakened against the other major currencies in the Asian session on Tuesday, as early results showed that Justin Trudeau’s Liberal Party is set to attain landslide victory in parliamentary elections on Monday, ending the power of Conservative Prime Minister Stephen Harper.
The nation’s major television networks projected Justin Trudeau’s Liberals win, while saying it was too early to predict whether the party would have enough seats for a majority government. The projected win ends the Conservative Prime Minister Stephen Harper’s power.
Monday, the Canadian dollar fell 0.68 percent against the U.S. dollar, 0.69 percent against the yen, 0.20 percent against the euro and 0.14 percent against the Australian dollar.
In the Asian trading, the Canadian dollar fell to a 1-week low of 1.3048 against the U.S. dollar, from yesterday’s closing value of 1.3018. The loonie may test support near the 1.32 region.
Against the yen, the euro and the Australian dollar, the loonie dropped to 5-day lows of 91.58, 1.4789 and 0.9478 from yesterday’s closing quotes of 91.77, 1.4751 and 0.9438, respectively. If the loonie extends its downtrend, it is likely to find support around 89.00 against the yen, 1.50 against the euro and 0.96 against the aussie.
Looking ahead, Eurozone current account data for August is slated for release, later in the day.
At 5:45 am ET, Bank of England MPC Member Ian McCafferty will deliver a speech about the evolution of financing conditions for businesses since the 2008 crisis and to what extent they are still hindering the economy, in London.
Fifteen minutes later, Bank of England Governor Mark Carney will testify on the Bank of England Bill before the Treasury Select Committee in London.
In the New York session, Canada wholesale sales data for August and U.S. housing starts and building permits, both for September, are slated for release.
At 9:00 am ET, Federal Reserve Bank of New York President William Dudley is expected to speak about “The Evolving Structure of the U.S. Treasury Market” in a conference hosted by the Federal Reserve Bank of New York. Federal Reserve Governor Jerome Powell will also deliver opening remarks at the same conference.
The material has been provided by InstaForex Company – www.instaforex.com