I think there's more (potential) for moves with the U.S. dollar.
The more experienced and representative Conservative cabinet makes the Conservative minority government appear more stable than feared, while the problems with the Liberal Party suggest that the Liberals will provide a weak opposition, unable or willing to force an election soon.
The rift, if not civil war, within the Liberal party also presents an almost Herculean task for any new leader.
All in all, commodity prices are higher and we're seeing some strength in the Canadian dollar.
The uncertainty that would accompany a weakened or likely falling Parliament within a year, year and a half, is not there. All things equal, that should be a positive shock to the Canadian dollar forecast beyond a year.
The narrowing of deficit obviously helped the U.S. dollar rally across the board. There is more indifference about the Canadian number. We are seeing people buying the U.S. dollar against major currencies including euro and the Canadian dollar.
(There was) confusion about what the heck they meant. The market thought it was good (for the U.S. dollar), then they had second thoughts about it.
If energy prices remain high for long enough, there is a risk that they would bleed into underlying inflation.
The Canadian dollar will bounce up and down, following crude oil. Declines in oil are negative for the Canadian currency.
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