Trudeau Suspends Parliament
The Canadian Dollar has strengthened today in response to yesterday’s speech from Canadian prime minister Justin Trudeau. Trudeau announced a suspension of parliament, which will return on September 23rd, when he will announce an “ambitious” new spending plan to help drive the economy forward.
The Canadian leader has prorogued the legislature in order to work on delivering a new agenda amidst a backdrop of double-digit unemployment and a recent string of scandals which have shaken support in the former poster-boy political leader.
Trudeau’s leadership has been rocked recently by a number of events and incidents. Firstly, it was discovered that Trudeau and his family had taken a secret trip to the Bahamas in 2016, using the helicopter of the Aga Khan, leader of an organisation which has since received several hundred million in Canadian federal grants. It was then discovered that Trudeau’s administration had pressured the Attorney general at the time to refrain from prosecuting the country’s largest engineering companies which had been accused of bribing Libyan officials in exchange for contracts between 2001 and 2011.
Freeland Takes On Finance Minister Role
More recently, Trudeau has lost two of his leading female cabinet members, as well as his finance minister who resigned over a scandal linked to charity-fraud. Trudeau announced this week that he has appointed Chrystia Freeland as the new finance minister.
Freeland’s appointment has been well received among the business and finance community. Having worked on some of the administration’s most difficult issues, such as the North American free trade agreement negotiations, the deputy prime minister ( a role Freeland will retain) has proven herself to be an invaluable asset to the PM.
Explaining his plans to work on delivering a new economic plan in September, Trudeau said: “This is our moment to change the future for the better. We can’t afford to miss it because this window of opportunity won’t be open for long.” Trudeau went onto say that while the economic downturn as a result of the pandemic has been heavy, there is now an “unprecedented” opportunity for creating a new plan to help the economy recover and fill in the “gaps” in public health and social safety which have been highlighted as a result of the pandemic.
USDCAD (bearish below 1.3332)
From a technical viewpoint. USDCAD continues to trade lower within the broad bearish channel which has framed the reversal from 2020 highs. Price has now broken down below the 1.3332 level and, while below the 50dma also, the near-term outlook remains bearish with the 1.2961 level the next support zone to watch.
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