05.09.202513:25:18UTC+00Canadian Dollar Steady After Jobs Data

The Canadian dollar hovered around 1.38 against the US dollar, halting its consecutive session decline. This stabilization was attributed to the US dollar's weakening, which counterbalanced rising expectations of dovish monetary policy from the Bank of Canada following an unexpected increase in unemployment figures. The DXY index reflected a decrease in short-term Treasury yields as softer US labor market data heightened the likelihood of several rate cuts by the Federal Reserve. In Canada, the anticipation for a dovish stance from the Bank of Canada grew, as unemployment climbed to 7.1% in August 2025—its highest since the pandemic—surpassing the forecasted rate of 7% and rising from 6.9% in July. These developments support the Bank of Canada's perspective that ample labor supply and economic growth risks, exacerbated by tariffs and US policy uncertainties, could further pressure the domestic employment landscape.