The news is crossing the wires via Bloomberg that Canadian Prime Minister Justin Trudeau’s ruling Liberal Party is on track to lose roughly half a dozen seats in Atlantic Canada, as expected.
The Liberals have won in 24 of 32 districts, according to preliminary results from Elections Canada and the Canadian Broadcasting Corp. The Conservatives are ahead in six districts while the New Democrats are leading in one.
Canada could be facing a minority government, as no party looks poised to win 170 districts required for a majority, as per recent polls. The winner, therefore, will likely require the support of other parties to pass laws. As the incumbent, Trudeau has the right to continue to govern and test parliament for support, even if he wins fewer districts than Scheer, according to a Bloomberg report.
The USD/CAD pair is currently trading at three-month lows below1.3080. A liberal government supported by the anti-pipeline New Democratic Party could be bad news for Canada’s energy sector.
That said, historical data indicates the election results do not have a big impact on the underlying trend in the CAD.