Canadian dollar weakens as soft jobs data dims higher rate bets

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Thompson/PostmediaThe Canadian dollar sank to its weakest level since April 2025 after a softer-than-expected reading of the nation’s labour market reduced the odds of an interest-rate increase by the Bank of Canada.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe loonie fell as much as 0.5 per cent against its United States counterpart on Friday to 1.4299 per dollar, the weakest level since U.S. President Donald Trump’s sweeping tariff announcement disrupted markets last year. Canadian bonds rallied, sending two-year yields down to a one-month low after new data showed employment in Canada fell by 68,300 last month, more than erasing previous job gains this year.This advertisement has not loaded yet, but your article continues below.“Canadian employment figures came in much softer than expected this morning, driving down the likelihood of a hike from the BoC this year and putting the loonie under meaningful pressure,” said Andrew Hazlett, a foreign-exchange trader at Monex Inc.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againPrior to the September jobs data, traders fully priced in a rate hike for December, largely fuelled by inflation concerns. Ongoing war in the Middle East has been driving up energy prices.The weak labour numbers provided an initial sign of how U.S. tariffs have weighed on the Canadian economy. The unemployment rate edged higher to 6.5 per cent in September from 6.4 per cent in August, Statistics Canada reported on Friday.“The rise in the unemployment rate is an indication that the labour market is under strain and slack in the real economy remains sizeable,” said Bipan Rai of BMO Asset Management. “That has curbed some of the tightening priced into the December BoC date, but we still have two more reports until then and employment figures are notoriously volatile in Canada.”—With assistance from Edward Bolingbroke.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.