Business and Economy
Canadian dollar climbs to seven-week high as US election results shake markets
ASM, Philippine Canadian Inquirer
November 05, 2026
Photo courtesy: Reuters
The Canadian dollar rose to its highest level in seven weeks on Wednesday, November 4, as the US dollar weakened following the American midterm elections and new trade figures showed a widening Canadian surplus.
The loonie gained 0.3% to trade at 1.3965 per US dollar, equivalent to 71.61 US cents. It briefly reached 1.3930 per US dollar, its strongest level since September 16.
The rally followed a major shift in US politics, with Democrats securing control of both the House of Representatives and the Senate in the November 3 midterm elections.
The results raised expectations of greater political resistance to President Donald Trump’s economic and trade policies, contributing to a broader decline in the US dollar.
George Davis, chief technical strategist at RBC Capital Markets, attributed the Canadian dollar’s gains partly to the market reaction to the election results.
Davis said Democratic control of Congress could complicate Trump’s trade and military agenda, potentially weakening investor demand for US assets.
Canada’s latest trade figures also supported the loonie.
According to Statistics Canada, the country’s merchandise trade surplus widened to C$5.35 billion in September, its largest since May 2022.
The increase was driven largely by gold and energy exports. However, the broader trade picture remained mixed, with export volumes falling 4% during the month.
Canadian services activity also contracted for a fifth consecutive month in October, reflecting continued pressure from rising costs and trade uncertainty.
Despite the political changes in Washington, Canada’s position on bilateral trade negotiations remains unchanged.
Dominic LeBlanc, the federal minister responsible for Canada-US trade relations, said the election outcome would not alter Ottawa’s approach to discussions with American officials. He also indicated that further talks with US counterparts were expected soon.
Meanwhile, Canadian government bond yields declined alongside US Treasury yields. The benchmark 10-year Canadian bond yield fell seven basis points to 3.712%, its lowest level since August 28.
