Canadian money and piggy bank

Canadian dollar dwindles as Americans hit the polls

The Canadian dollar has diminished beside its U.S. counterpart as of Tuesday morning, “but stuck to a narrow trading range as Americans began casting votes in U.S. midterm congressional elections that could help shape prospects for the greenback.” This major election will show what American voters think of Republican President Donald Trump's work so far.

At 10:08 a.m., The Canadian dollar CAD=D4 was trading “0.1 percent lower at 1.3124 to the U.S. unit, or 75.20 U.S. cents. The currency traded in a range of 1.3106 to 1.3132.”

Since holidays and big news events tend to sway financial markets, futures and securities investors have been focused on whether the United States’ congressional midterms would “disrupt the stellar run of the U.S. dollar .DXY” over the past few months. The greenback (USD) didn’t change much this morning against a range of other major currencies.

One of Canada’s leading exports, oil, fell once Washington granted sanctions and exemptions to “top buyers of Iranian oil.”

Crude U.S. oil prices also fell (0.2 percent) to $62.97 a barrel.

Building permits in Canada and their relative value rose slightly at 0.4 percent in September from August matching a general trend upward for Canadian real estate moving into October.

However, Canada’s economy has been moving a bit away from “housing and consumption” and more toward “business investment and exports” according to a Bank of Canada quarterly report; interest rates were increased for a fifth time since July 2017.

Yesterday, Stephen Poloz, Bank of Canada Governor, told a London business audience that the market volatility, a strengthening U.S. dollar and “higher yields for long-term bonds” were signifiers of the market normalizing.

Financial experts are expecting another interest rate hike in January, according to Reuters.