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Tuesday, May 3, 2011

Canadian Dollar Futures predictions after Canadian federal election 2011

Canadian Dollar Futures predictions after Canadian federal election 2011 : The Canadian dollar closed lower as traders took in news that al-Qaida leader Osama bin Laden had been killed and looked ahead to the possible outcome of Monday's federal election.

The currency lost 0.49 of a cent to 105.17 cents US.

U.S. President Barack Obama announced late Sunday night that bin Laden had been killed in an operation by special forces in Pakistan. Bin Laden was the mastermind behind the Sept. 11, 2001, terror attacks that led the United States into war in Afghanistan and later Iraq.

The dollar's weak showing came at the end of an election campaign that could result in a very different parliamentary makeup and a weaker loonie.

"Most of the opinion polls appear to show a Conservative minority with the NDP as the official opposition, which will leave a lot of room for fancy politics over the next few months," said Scotia Capital chief currency strategist Camilla Sutton.

"A strengthened NDP position will likely weigh on (the Canadian dollar) as the market will worry over the longer term implications and the potential for further political uncertainty in the months ahead."

The dollar failed to find support from oil prices, which turned volatile as traders tried to gauge the effect of bin Laden's passing. The June contract on the New York Mercantile Exchange finished the session down 41 cents at US$113.52 a barrel. It had surged as high as just under US$115 a barrel and as low as US$110.82 amid hopes the development could weaken al-Qaida's ability to carry out attacks and destabilize the oil-rich Middle East.

Gold prices turned positive with the June bullion contact on the Nymex ahead 70 cents to a fresh record high close of US$1,557.10 ounce.

Copper prices also came back from early lows and the July copper contract in New York was ahead two cents at US$4.20 a pound. For the latest updates PRESS CTR + D or visit Stock Market news Today

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