Canadian dollar set for worst week since September on weak jobs data

The Canadian dollar is on track for its largest weekly loss since September, impacted by weak employment data, according to Bloomberg Markets. The latest figures reveal that Canada’s employment fell by 4,700 in October, marking the third consecutive month of job losses. Additionally, the unemployment rate rose to 6.7%, the highest level since April. This economic backdrop is influencing market expectations regarding the Bank of Canada’s upcoming monetary policy decisions. In the prediction markets, the likelihood of the Bank of Canada implementing a significant rate hike at its December meeting has decreased. Current pricing indicates a 71% probability that the central bank will maintain its current rate, up from 62% the previous day. Conversely, the chances of a 25 basis point rate hike have decreased to 30%, down from 37% a day earlier. The ongoing deterioration in Canada’s labor market appears to be a significant factor in these shifts. Market participants are closely monitoring the situation, with expectations that the Bank of Canada might adopt a more cautious approach in light of weakening economic indicators. This development comes amid broader concerns about the strength of...