Canadian Dollar Hits 18-Month Low After September Jobs Shock
Canada's loss of 68,300 jobs weakened the loonie and reduced expectations for a near-term Bank of Canada rate hike.
Statistics Canada data reported by Reuters on October 9 showed a net employment decline of 68,300 in September after another decline in August. The jobless rate rose to 6.5 percent. Markets had expected employment to grow, making the actual result a substantial downside surprise.
Reuters reported the Canadian dollar weakened toward C$1.43 per US dollar, an 18-month low at the session's weakest point. Because USD/CAD is quoted as Canadian dollars per US dollar, a rise in that rate means the Canadian currency is weaker, not stronger.
Investors responded partly by reducing their expectations for a Bank of Canada interest-rate increase in October. Economic weakness can restrain hikes even while elevated fuel prices keep inflation a concern, producing competing pressures on the central bank.
Currency levels and rate probabilities are historical October 9 snapshots. Watch subsequent labour-market releases, inflation and official Bank of Canada guidance before assuming the move will continue. A single report cannot establish the next decision.
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