Canadian dollar has steepest drop since January after surprise jobs decline
The loonie fell 0.8% against the US dollar after Canada shed 4,700 jobs in October, cutting bets on Bank of Canada rate hikes, Reuters reported.
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what happened
The Canadian dollar posted its biggest daily decline since January 30 against the US currency on Friday, according to Reuters. The move followed domestic data showing employment fell by 4,700 in October and the jobless rate rose to 6.7%, a six-month high. Analysts had expected a gain of 13,600 jobs, and the report marked a third straight monthly loss.
The weak figures reduced the odds of a Bank of Canada tightening in December to 36% from 40%, swap market data showed. Scotiabank strategists said strong US payrolls added further pressure on the loonie heading into the weekend.
why it matters
For currency traders, the key point is rate expectations. A soft labour market lowers the chance of Bank of Canada tightening, which weighs on the Canadian dollar, while the two-year yield gap with the US widened in the dollar's favour.
market impact
Canadian dollar: weak jobs data lowers rate-hike bets, pressuring CAD and lifting USD/CAD
- Canadian dollar pressure down — weak jobs data reduces expectations of a Bank of Canada rate hike
- USD/CAD pressure up — a firmer US dollar as rate expectations shift toward the US
tags
instruments
sources
- Canadian dollar posts steepest decline since January on surprise jobs loss — Reuters, 6 November 2026 at 22:02 UTC
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