The Canadian dollar reached a new 11 year low last week, and the next event that could push the loonie lower is upcoming elections in Canada.
Here is the view from CIBC:
Here is their view, courtesy of eFXnews:
Governor Poloz would vote for a weaker C$, as the BoC continues to look towards non-energy exports to drive the economy, says CIBC World Markets.
“Voters wouldn’t elect to have a weaker currency, however with no clear front-runner emerging as October 19th approaches that’s exactly what they may face. We only have to look across the pond to the UK to see how election uncertainty can impact a currency. The sterling effective exchange rate was more than 2% weaker than its underlying trend in the run-up to the UK elections, only to rebound when a clear winner emerged,” CIBC argues.
“The loonie could see a similar slide in the weeks to come. And if no clear winner emerges, could stay weaker than it otherwise would for a period of time afterwards,” CIBC projects.
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