Hi BaboO,
The Canadian federal election is shaping up to be a close race between the Conservatives and New Democratic Party (NDP). One of the most recent polls has the NDP gaining momentum to 33% and now only 4 points behind the Conservatives 37 points. The Liberals have faded fast and now trails both parties with only 19 points.
It appears we will see another Conservative minority government, however, this time the official opposition will be the NDP instead of the Liberals. Canada has never had a federal NDP government, although there have been several NDP provincial governments over the years.
If the results play out this way, it may weaken the dollar slightly due to the NDP socialist platform and increased weight in parliament as the official opposition. If by chance the NDP squeak out a minority, then we could see the CANDO fall back below par due to the increased spending to support all their social programs, and from the increased instability that will be perceived from foreign investors.
A quick personal anecdote....way back when Jack Layton, the leader of the NDP was jumpstarting his political career, he temporarily taught a political science class that I enrolled in, after his defeat in the Toronto mayoral election. He is a genuinely nice guy and would routinely invite the class out to a local pub for drinks....but he never knew who was going to pay for the round. :-)
