Who would have ever thought that Canada, until recently widely recognized as the best overall country in which to live for people from all walks of life when considering a wide range of important criteria, would ever become the subject of debate by people who use the words ‘Canadian government’ and ‘dictatorship’ in the same sentence?
Well, that is what appears to be happening right now, as commentators, journalists and financial markets experts watch the increasing fortitude of the vast protests and blockades which began in Ottawa, Ontario and have picked up the pace in other parts of Canada, in which vast convoys of trucks have been blocking the nation’s capital in order to attempt to bring the government’s drastic Covid restrictions to an end.
Prime Minister Justin Trudeau will not budge, and nor will the protestors, meaning that for the first time in Canadian history, a prime minister is beginning to enact a form of Martial Law against its own citizens who fear that democracy in their beloved nation is waning.
As would be expected, the government’s stronghanded line is being viewed through the lens of the financial markets, and the Canadian Dollar, always a safe bet among majors, has been slipping in value as investor confidence is fading in Canada’s economy under its left-wing government which is beginning to treat personal and commercial liberty with contempt.
Mr Trudeau has been treating any speaker from the opposition Conservative party or members of the public with disdain, writing their views off and has brought in the police to begin arresting protestors and removing trucks. This has spurred more members of the public into action and further large convoys and masses of people are heading to Ottawa to strengthen the protests.
This morning, as the European markets open, the British Pound is up noticeably over the Canadian Dollar, reaching 1.74 in the early hours of the UK trading session, that makes it a one-year high.
Last week, as the pressure mounted and the protests strengthened, and as Mr Trudeau began to threaten the democratic right of the public by stating he would invoke emergency powers against them, the Canadian Dollar fell further against major currencies in regions with fully open economies.
On Friday, February 18, the Pound reached 1.73 against the Canadian dollar, finishing the week at a one-year high point, a level that was exceeded slightly this morning.
Whilst some economies in the Eurozone are still under some form of arbitrary restriction, they are functioning to a large extent, and the Euro has been strengthening against the Canadian Dollar with some vigour also. Although not to the same extent as the British Pound, the gains made by the Euro against the Canadian Dollar over the past day are worthy of note, the Euro having gained one point and is now trading at 1.45.
Investors are very wary of any form of destablization of government, especially if it is out of character and unprecedented as is the case in Canada.
Therefore, volatility in the Canadian Dollar against its major peers is something to watch.
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