Canadian PM Resigns, Canadian Dollar on Bullish Run

Justin Trudeau, the prime minister of Canada, announced Monday that he would resign as leader of the ruling Liberal Party but remain in his position until a new leader is chosen in advance of the general elections scheduled for late October.

The Canadian dollar rose by 50 basis points to 1.437 against the greenback.

“After the party chooses its next leader through a vigorous, nationwide, competitive process, I intend to resign as prime minister and party leader,” he stated at a press conference on Monday.

He stated that the Canadian parliament will be suspended, until a vote of confidence is held on March 24. The past few months have seen a complete lack of productivity in Parliament due to obstruction, filibustering, and other issues. ‘We are currently the minority government with the longest tenure in history, and we need to start over,” Trudeau declared.

Former Trudeau ally and Deputy and Finance Minister Chrystia Freeland abruptly resigned in December, citing disagreements over Ottawa’s response to potential U.S. sanctions, sparking Canada’s most recent political crisis.

Under the incoming administration of President-elect Donald Trump, U.S., trade nationalism will likely increase.  Dominic LeBlanc has been named to succeed her as head of the finance ministerial portfolio.

The Canadian economy under Trudeau’s leadership barely managed to keep inflation below its 2 percent target in November, however, still struggling with mounting household debt, rising unemployment, the OECD’s worst productivity performance in 2023, and unsettled relations with the world’s largest economy – where President-elect Trump has already hinted at the prospect of annexation and 25% tariffs while disparaging “governor” Trudeau.

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.