Canadian Dollar rebounds despite PM Trudeau resignation

The Canadian Dollar Strengthened on Monday
The Canadian Dollar (CAD) appreciated by 0.5% on Monday, benefiting from a weakening of the US Dollar across the market. This move was further supported by the resignation of Canadian Prime Minister Justin Trudeau.

Prime Minister Trudeau Resigns

Prime Minister Trudeau announced his resignation as leader of the Liberal Party, creating uncertainty within the Canadian government. Parliament will now be prorogued until a new party leader is chosen. This political development coincided with the release of key Canadian economic data, which is expected to be overshadowed by the highly anticipated US Nonfarm Payrolls report.

Political Pressure Mounts

Trudeau’s resignation followed mounting pressure, exacerbated by the recent resignation of Finance Minister Chrystia Freeland amid concerns over the Canadian government’s response to potential US tariffs.

Opposition Parties Lack Succession Plan

Despite months of efforts to oust Trudeau, opposition parties within Canada failed to establish a clear succession plan, leaving the country in a state of political limbo.

USD/CAD Rebounds, but Remains Under Pressure

The Canadian Dollar’s initial rally pushed the USD/CAD exchange rate back towards the 1.4300 level. However, the pair has since retreated, indicating some resistance to further appreciation. The Loonie continues to struggle to recover from recent multi-year lows against the US Dollar, with support seen near the 1.4400 level.