Canadian dollar pulls back from six-week high ahead of key jobs data
TLT•The Canadian dollar fell 0.1% to 1.40 per US dollar, extending its retreat from a six-week high, as oil prices dropped and investors awaited Friday’s October jobs report. Analysts expect employment to rise by 13,600.
1. Currency retreats
The Canadian dollar extended its pullback from a six-week high, trading 0.1% lower at 1.40 per US dollar, or 74.21 US cents. It had touched 1.3940 on Friday, its strongest intraday level since September 16.
2. Rates and jobs outlook
The Bank of Canada raised its benchmark rate last week for the first time in three years, and Governor Tiff Macklem said Tuesday that further increases might be needed. Analysts expect Friday’s October jobs report to show 13,600 jobs added; one economist said weak data could lead markets to remove some expected 2027 rate hikes. The swap market is pricing in roughly 70 basis points of additional tightening by the end of 2027.
3. Oil and bond yields
Oil, one of Canada’s major exports, touched a nearly three-week low. Canada’s 10-year yield rose 1.8 basis points to 3.771%, after earlier reaching its lowest level since September 2.
