{"id":1576,"date":"2025-11-20T04:56:24","date_gmt":"2025-11-20T04:56:24","guid":{"rendered":"https:\/\/newsraise.com\/?p=1576"},"modified":"2025-11-20T04:56:24","modified_gmt":"2025-11-20T04:56:24","slug":"canadian-dollar-on-all-time-low-amidst-job-uncertainty-oil-price-drop","status":"publish","type":"post","link":"https:\/\/newsraise.com\/index.php\/2025\/11\/20\/canadian-dollar-on-all-time-low-amidst-job-uncertainty-oil-price-drop\/","title":{"rendered":"Canadian Dollar on All-time Low Amidst Job Uncertainty & Oil Price Drop"},"content":{"rendered":"

The Canadian dollar slipped to a 12-day low, pressured by falling oil prices and rising uncertainty around the U.S. Federal Reserve\u2019s next interest rate move.<\/h2>\n

The decline followed a surprise announcement from the U.S. Bureau of Labor Statistics (BLS), which cancelled the highly anticipated October payrolls report. As markets digested the missing data and shifting monetary expectations, the Loonie weakened 0.5%, trading at 1.40 per U.S. dollar<\/strong> or 71.12 U.S. cents<\/strong>. It briefly touched 1.4065 <\/b>and\u00a0then made the steepest single day decline since July 7.<\/p>\n

U.S. Jobs Report Cancelled, Shaking Market Confidence<\/strong><\/h2>\n

The BLS confirmed it will not publish October\u2019s employment report due to delays caused by the 43-day U.S. government shutdown<\/a>. Instead, the October payrolls will be combined with November\u2019s numbers, scheduled for release on December 16 – <\/strong>after the Federal Reserve\u2019s December 9\u201310<\/strong> policy meeting.<\/p>\n

The absence of this crucial dataset has significantly reshaped expectations for a potential rate cut.\u00a0<\/i>Osborne added that expectations for a rate cut could fall to \u201ceffectively zero\u201d unless September payroll data<\/strong>, due Thursday, comes in extremely weak.\u00a0With traders recalibrating their expectations, the U.S. dollar index (DXY)<\/strong> rose, supported by risk-off sentiment and concerns over missing economic indicators.<\/p>\n

Current market pricing shows a 73% probability<\/strong> that the Fed will leave interest rates unchanged in December.\u00a0This upward pressure on the U.S. dollar contributed further to the Loonie\u2019s weakness.<\/p>\n

Oil Prices Fall 2.1%, Adding Pressure on the Loonie<\/strong><\/h2>\n

Oil, one of Canada\u2019s most critical exports, also faced downward pressure. Crude prices slid 2.1%<\/strong>, settling at $59.44 per barrel<\/strong>. A report suggesting the U.S. may be pursuing a proposal to end the Russia-Ukraine war led to speculation of improved stability in energy markets, prompting traders to scale back oil-demand expectations.<\/p>\n

Since the Canadian economy is closely tied to commodity performance<\/a>, the drop in oil quickly translated into currency weakness.<\/p>\n

Bank of Canada Expected to Hold Rates Steady<\/strong><\/h2>\n

On the domestic front, the Bank of Canada (BoC)<\/strong> is widely expected to keep interest rates unchanged next month. The central bank recently called for a coordinated, economy-wide approach<\/strong> to improve Canada\u2019s lagging productivity<\/a>\u2014an issue becoming more pressing amid shifting U.S. trade policies and global competitiveness challenges.<\/p>\n

Canadian<\/a> government bond yields were mixed across the curve, with the 10-year yield steady near 3.249%<\/strong>, reflecting investor caution ahead of fresh data.<\/p>\n

Outlook: Markets Await September Jobs Data for Clarity<\/strong><\/h2>\n

The Loonie\u2019s decline underscores the uncertainty gripping global markets. With October\u2019s U.S. employment<\/a> report off the table, traders are now sharply focused on November 20, delayed September jobs data, which could influence the Fed\u2019s tone heading into December.<\/p>\n

Until then, the Canadian dollar remains vulnerable to:<\/p>\n