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2026-11-07 03:20:27
Weaker-than-expected Canadian employment data has fueled concerns about the country's economic outlook, and the Canadian dollar is likely to experience its biggest weekly drop since late September. The Canadian dollar has already fallen 0.7%, and coupled with a significant weakening of the overall upward trend in the US dollar, the cumulative weekly decline may reach 1.1%. The latest employment data shows that Canada's unemployment rate rose slightly to 6.7% in October, with a decrease of 4,700 jobs. This marks the third consecutive month of decline in Canadian employment data, which has contributed to the Canadian dollar's continued downward trend. Simultaneously with the release of Canada's October employment data, the US also released its October employment data, which exceeded market expectations, further increasing market bets on a Federal Reserve rate hike next month. Sarah Ying, Head of Foreign Exchange Strategy at CIBC, pointed out that the Canadian employment report has had a significant negative impact on the Canadian dollar, with weakness in full-time and private sector employment indicating a weakening labor market at the lower levels. The interest rate expectations of Canada and the United States are expected to diverge further, and the risks for USD/CAD remain skewed to the upside, which means the Canadian dollar still has room to weaken.
