Justin Trudeau has been swept to power in Canada, winning an outright majority for his Liberal Party and ousting the decade long serving Conservative PM Stephen Harper. While polls suggested a change in the nation, the magnitude of the win came a bit as a surprise.
USD/CAD was already on the rise towards the event, and extends its gains in the aftermath.
The 43 year old is set to take a different approach on a wide variety of topics. This includes raising taxes for the top 1% and cutting taxes for the middle class. He also favors more environmental protection, undoing the loosening that the current government enacted. This could impact oil production.
His electoral plan includes making decisions on oil after 90 days in office, and anything is possible. His big win of 184 seats against 102 for the conservatives provides for a wide mandate for change.
In addition, there is talk that his party may consider raising the inflation target for the Bank of Canada. Setting a higher bar for inflation would mean more stimulus and thus a weaker Canadian dollar, but this is still to be seen.
USD/CAD had already risen from the 1.29 battleground to around 1.30 and has reached a high of 1.3047 in the aftermath.
More: Canada’s Changing Of The Guard And Its Economic Implications
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