Canadian dollar pays the price for Trudeau's actions as Pound reaches one-year high


Who would have ever thought that Canada, until recently widely recognized as the best overall country in which to live for people from all walks of life when considering a wide range of important criteria, would ever become the subject of debate by people who use the words 'Canadian government' and 'dictatorship' in the same sentence?

Well, that is what appears to be happening right now, as commentators, journalists and financial markets experts watch the increasing fortitude of the vast protests and blockades which began in Ottawa, Ontario and have picked up the pace in other parts of Canada, in which vast convoys of trucks have been blocking the nation's capital in order to attempt to bring the government's drastic Covid restrictions to an end.

Prime Minister Justin Trudeau will not budge, and nor will the protestors, meaning that for the first time in Canadian history, a prime minister is beginning to enact a form of Martial Law against its own citizens who fear that democracy in their beloved nation is waning.

As would be expected, the government's stronghanded line is being viewed through the lens of the financial markets, and the Canadian Dollar, always a safe bet among majors, has been slipping in value as investor confidence is fading in Canada's economy under its left-wing government which is beginning to treat personal and commercial liberty with contempt.

Mr Trudeau has been treating any speaker from the opposition Conservative party or members of the public with disdain, writing their views off and has brought in the police to begin arresting protestors and removing trucks. This has spurred more members of the public into action and further large convoys and masses of people are heading to Ottawa to strengthen the protests.

This morning, as the European markets open, the British Pound is up noticeably over the Canadian Dollar, reaching 1.74 in the early hours of the UK trading session, that makes it a one-year high.

Last week, as the pressure mounted and the protests strengthened, and as Mr Trudeau began to threaten the democratic right of the public by stating he would invoke emergency powers against them, the Canadian Dollar fell further against major currencies in regions with fully open economies.

On Friday, February 18, the Pound reached 1.73 against the Canadian dollar, finishing the week at a one-year high point, a level that was exceeded slightly this morning.

Whilst some economies in the Eurozone are still under some form of arbitrary restriction, they are functioning to a large extent, and the Euro has been strengthening against the Canadian Dollar with some vigour also. Although not to the same extent as the British Pound, the gains made by the Euro against the Canadian Dollar over the past day are worthy of note, the Euro having gained one point and is now trading at 1.45.

Investors are very wary of any form of destablization of government, especially if it is out of character and unprecedented as is the case in Canada.

Therefore, volatility in the Canadian Dollar against its major peers is something to watch.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil Weekly Market Wrap With Gary Thomson: EUROPEAN CURRENCIES, US GDP NEWS, OPEC+, NATURAL GAS PRICES Weekly Market Wrap With Gary Thomson: NASDAQ’S NEW TOP, USD/CAD NEWS, WTI OIL, NVDA SHARES DECLINE Federal Reserve's 2024 Interest Rate Outlook: A Measured Descent Expected Weekly Market Wrap With Gary Thomson: EUR/GBP’s NEW HIGH, US INFLATION, S&P500 FORECAST, BRENT CRUDE

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.