Canadian Dollar Rises to 2-Month Highs After Unemployment

2025-12-05 14:04 By Felipe Alarcon 1 min. read

The Canadian dollar strengthened past 1.39 per US dollar, reaching two month highs, as a surprisingly firm labour report tightened the domestic policy outlook while the US dollar softened.

Unemployment unexpectedly fell to 6.5% in November, the lowest in 16 months, with the number of unemployed down about 80,000 to roughly 1.5 million.The result marked a clear reversal of the spring rise in joblessness and a sign that domestic slack is receding.

That payroll strength makes it much likelier the Bank of Canada will pause after its October cut because officials have stressed they will be data driven and will stop easing if activity and inflation prove firmer than expected.

At the same time markets have moved to price a near certain Federal Reserve cut in December and further easing next year, which has weighed on the dollar.



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