Election ahead likely to weigh on Loonie

Incumbent Canadian Prime Minister Stephen Harper has called for elections, which will be held on October 19, 2015.  Mr. Harper, who assumed office on February 6th, 2006 has been one of the longest serving Prime Minister of Canada and leader of Conservative party.

Mr. Harper was successful in forming a majority government in 2011, after minority government in 2006. This year though, it will not be easy for Mr. Harper. To add to the challenge, number of seats rose to 338 in 2015 from 308 in 2011, where his party won 166.

Latest poll shows that New Democratic Party (NDP) led by Thomas Mulcair is slightly ahead of the conservatives. Moreover NDP has won against surprise of many in Alberta local election, which has traditionally been a conservative stronghold.

Policies pursued by conservatives are generally considered to be pro-business and uncertainty is high over policies if new party comes to power.

According to latest poll -

New Democratic Party - 32.6%

Conservatives - 31.6%

Liberals - 25%

These uncertainties are likely to weigh further on Lonnie, which is battered this year by lower oil price and policy easing by Bank of Canada (BOC).

US dollar is currently trading at 1.313 against Loonie. It is hovering around 1.315 area, high of 2008/09.