The Canadian dollar fell 0.7% to 1.4110 per US dollar after Canada lost 4,700 jobs in October, against expectations for a 13,600 gain. The jobless rate rose to 6.7%, and market-implied odds of a December Bank of Canada rate increase declined to 35% from 40%.
The Canadian dollar fell to a nearly three-week low against the US dollar after data showed the economy shed jobs for a third straight month, cooling expectations for Bank of Canada rate hikes. The currency was down 0.7% at 1.4110 per US dollar after touching 1.4125, its weakest intraday level since October 19.
Canadian employment fell by 4,700 in October, while the jobless rate rose to a six-month high of 6.7%. Analysts had expected a gain of 13,600 jobs. Market-implied chances of a Bank of Canada rate increase in December fell to 35% from 40%.
The Canadian dollar was on track to lose nearly 1% for the week, ending three straight weeks of gains. Strategists cited elevated equity-market volatility and the combination of weak Canadian and strong US jobs data. The US dollar strengthened after US nonfarm payrolls rose more than expected; the Canadian two-year yield fell 3.3 basis points to 3.123%.
