Canadian Dollar Flying High Amid Contentious Election and Strong Economic Indicators

Canada's dollar traded at its highest level in four months against its U.S. counterpart on Monday. In the early Asian trading session on Tuesday, the CAD briefly traded as high as 1.30714 against the USD - a price not seen since July 22, 2019.

While some polls have indicated the Canadian liberal party may fail to get majority seats in parliament due to Prime Minister Justin Trudeau's blackface and SNC-Lavalin scandals, currency market speculators have brushed aside the political uncertainty due to strong economic indicators coming out over the past two weeks.

Today, Statistic Canada reported a 1.4% (CAD$15.5 billion) increase in building construction investment for the month of August. Additionally, investors' confidence in the Canadian economy was also boosted by strong increases in full-time jobs in September:

"Employment rose by 54,000 in September, driven by gains in full-time work. The unemployment rate declined 0.2 percentage points to 5.5%.," said Stats Canada in their last Labor Force Survey, published on October 11.

Since the release of the Labor Force Survey figures two weeks ago, the CAD has appreciated more than 1.6% vs. the USD.

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