Canadian Dollar Falls 0.8% as Weak Jobs Data Curb Rate-Hike Expectations

The Canadian dollar fell about 0.8% against the US dollar on Friday, its sharpest daily decline in nine months, after weaker employment data tempered expectations of further Bank of Canada interest-rate increases.

By Adam Ujazdowski. Adapted from the Polish original, published on 7 November 2026.

One US dollar bought C$1.4128, according to Reuters’ report on 6 November. USD/CAD reached C$1.4137 during the session, leaving the Canadian currency at its weakest since 19 October. These were prices at the time of the report, rather than official closing rates.

Unemployment rises to 6.7%

Statistics Canada said on 6 November that employment fell by 4,700 in October, a change it described as small. The unemployment rate nevertheless rose 0.2 percentage points to 6.7%, while the employment rate slipped to 60.5%.

Economists polled by Reuters had expected a gain of 13,600 jobs and an unchanged unemployment rate of 6.5%. Employment fell for a third consecutive month, although October’s decline was much smaller than those in August and September.

Private-sector losses offset by public hiring

The modest change in total employment masked substantial shifts between sectors. Private-sector employee numbers fell by about 53,000, while public-sector employment rose by about 50,000. Self-employment was broadly unchanged.

Wholesale and retail trade lost about 29,000 jobs. Construction added 16,000 and education added 15,000. Unemployment among people aged 15–24 rose 0.7 percentage points to 13.7%.

Canadian and US labour markets diverge

Canada’s weaker report coincided with strong US figures. US nonfarm payrolls rose by 165,000 in October, compared with expectations of 65,000, while unemployment fell to 4.1%. The US dollar strengthened after the release.

The Canadian figures reduced expectations of rate increases, whereas the US report reinforced expectations of further Federal Reserve tightening. These were changes in investors’ expectations, rather than announcements of new interest-rate decisions. Our report on US employment and the dollar examines the American currency’s reaction in more detail.

Sources: Statistics Canada, October 2026 Labour Force Survey; Reuters reports dated 6 November 2026.

This article is for information only and does not constitute an investment recommendation.