Canadian Dollar Weakens on Underwhelming Labor Data

2026-05-08 16:57 By Isabela Couto 1 min. read

The Canadian dollar weakened to 1.37 per USD, extending the pullback from the seven-week high of 1.358 on April 30th following weak domestic labor data.

Net employment in Canada unexpectedly fell by 17K jobs in April and the unemployment rate rose to a six-month high of 6.9%, strengthening bets that the BoC will prioritize economic growth and refrain from tightening policy further this year.

At the same time, stronger-than-expected US labor data boosted expectations that the Federal Reserve could keep interest rates elevated for longer, backing the preference for the greenback instead of the loonie for North American investors.

Meanwhile, investors continued to monitor developments in the Middle East after renewed US-Iran hostilities raised uncertainty over prospects for a deal that could restore oil supply from the region and ease energy inflation.



News Stream
Canadian Dollar Weakens on Underwhelming Labor Data
The Canadian dollar weakened to 1.37 per USD, extending the pullback from the seven-week high of 1.358 on April 30th following weak domestic labor data. Net employment in Canada unexpectedly fell by 17K jobs in April and the unemployment rate rose to a six-month high of 6.9%, strengthening bets that the BoC will prioritize economic growth and refrain from tightening policy further this year. At the same time, stronger-than-expected US labor data boosted expectations that the Federal Reserve could keep interest rates elevated for longer, backing the preference for the greenback instead of the loonie for North American investors. Meanwhile, investors continued to monitor developments in the Middle East after renewed US-Iran hostilities raised uncertainty over prospects for a deal that could restore oil supply from the region and ease energy inflation.
2026-05-08
Canadian Dollar Steady on Lower Oil and Dovish Outlook
The Canadian dollar weakened toward the 1.36 mark per USD from a seven-week high on April 30th, losing some ground due to the outlook of a dovish Bank of Canada and lower crude oil prices. The US stated that it was close to reaching a peace deal with Iran that would restore oil supply through the Strait of Hormuz. The resulting decline in crude oil prices limited the outlook of foreign exchange inflows to Canada due to lower turnover on oil exports. Meanwhile, the latest round of GDP data flagged a slowdown in the economy following the start of the war, supporting the Bank of Canada's dovish tilt in its guidance, opting to prioritize growth as inflation was not yet entrenched. Preliminary GDP data reflected a stall from the previous month in March despite higher energy output.
2026-05-07
Canadian Dollar Hits 7-week High
The Canadian Dollar touched 1.36 against the USD, the highest since the begining of March and heading for its biggest monthly gain since April 2025 as the greenback weakened broadly and investors weighed the impact of higher oil prices on interest rates.The DXY was trading lower for a 2nd session, with losses driven largely by a sharp advance in the yen following suspected intervention by Japanese authorities in currency markets.The CAD was also supported by a slightly less dovish Bank of Canada and high commodity prices. The central bank signaled on Wendesday it could raise rates consecutively if elevated energy prices persist and fuel inflation, prompting markets to reassess the policy outlook.
2026-05-01