Mark Carney's budget passed, just. File image: Bank of England.

The Canadian Dollar strengthened after political risk evaporated.

The Canadian Dollar was a top performer in otherwise staid markets after Mark Carney's budget cleared following a confidence vote in Ottawa.

The move says more about politics and positioning than it does about fundamentals.

CIBC notes that the CAD has been "an outperformer in G10 as the government passed the Fall budget," with USD/CAD slipping to 1.4033, a modest -0.16% move. The bank stresses that the reaction is slight, but real.

So what explains the outperformance?

🔼 1. Budget uncertainty has cleared, and markets like clarity.

The government survived the budget vote, avoided an election, and delivered long-awaited fiscal clarity.

For weeks, invest

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