Canadian greenback seen strengthening as Trudeau faces rising calls to step down

Investing.com — Canadian Prime Minister Justin Trudeau is dealing with rising calls from his social gathering members to step down. This improvement comes forward of a scheduled social gathering assembly set to happen this week. Trudeau is predicted to ship an announcement in Ottawa, the nation’s capital, at 10:45 a.m. native time on Monday.

Trudeau, who has been in energy for practically ten years, reportedly spent the vacation break considering his future. Some native stories recommend he could think about resigning earlier than the social gathering caucus gathers on Wednesday. Nonetheless, Trudeau’s spokespeople haven’t but responded to requests for feedback.

If Trudeau resigns, he would depart as one in all Canada’s most unpopular political figures, probably leaving his social gathering in a weakened state and the nation dealing with an unsure financial future. This uncertainty is compounded by incoming U.S. President Donald Trump’s promise to impose a 25% tariff on Canadian imports.

The prime minister’s political standing has been shaky, particularly within the wake of a voter backlash in opposition to progressive politics, financial decline, dissatisfaction with aggressive local weather insurance policies, and rising resistance to immigration. Trudeau’s maintain on energy was additional destabilized final month when the New Democratic Social gathering, which had been supporting his minority authorities, introduced its withdrawal of help.

This announcement got here shortly after the resignation of Finance Minister Chrystia Freeland, who stepped down resulting from disagreements with Trudeau’s spending proposals. Freeland, who additionally served as deputy prime minister, left the cupboard as a result of she believed Trudeau was not taking sufficient measures to arrange for a possible commerce struggle with Washington.

Requires Trudeau’s resignation have grown louder inside his social gathering because the Liberal Social gathering’s ballot numbers have fallen. The general public blames Trudeau for rising prices and housing shortages, which have been exacerbated by extra lenient immigration insurance policies.

Public opinion polls carried out in late 2024 and early this 12 months present Trudeau’s approval ranking has dropped to round 20%, and the Liberal Social gathering is trailing the Conservatives by greater than 20 share factors.

“With Trudeau’s pending resignation, it seems to be like a Conservative-led authorities is nearer to being on the best way in Canada, and we will now say with higher than 50% certitude that the Conservatives or a Conservative-led coalition will govern Canada in 2025,” Thierry Wizman, International FX & Charges Strategist at Macquarie, stated.

“That realization ought to assist the CAD rise up; the USD/CAD would possibly very properly have already made a prime — i.e., earlier than it in any other case would have — on a greater structural development outlook for Canada postelection.”

This text was generated with the help of AI and reviewed by an editor. For extra info see our T&C.