The loonie slipped 0.5% to 1.4060 per U.S. dollar, or 71.12 U.S. cents, after touching an intraday low of 1.4065, its weakest level since November 7. The drop marked the currency’s steepest single-day decline since July 7.
Market sentiment shifted after the U.S. Bureau of Labor Statistics (BLS) announced it would not publish October’s nonfarm payrolls report, opting instead to combine October and November figures in a single release scheduled for December 16—a week after the Federal Reserve’s December 9–10 policy meeting.
Analysts say the delay complicates expectations for a possible rate cut.
“The news we're not going to get the October non-farm payroll before the December Fed policy decision has cut back on U.S. rate cut expectations quite a bit,” said Shaun Osborne, chief currency strategist at Scotiabank. “I wouldn't be at all surprised to see expectations effectively fall to zero unless we get a very weak September payroll report.”
The BLS is set to release the delayed September employment data on Thursday, following the 43-day U.S. government shutdown that disrupted federal statistical schedules. Meanwhile, the U.S. dollar gained ground broadly, with investors pricing in a 73% chance the Fed will hold rates steady in December.
Adding further pressure on the Canadian dollar, oil prices declined 2.1% to $59.44 per barrel after reports emerged of a U.S. proposal aimed at ending the war in Ukraine. Canada, a major crude exporter, often sees its currency move in tandem with global oil markets.
At home, the Bank of Canada is likewise expected to keep interest rates unchanged next month. The central bank reiterated its call for a coordinated national strategy to address weak productivity—an issue it says is growing increasingly urgent amid challenges posed by U.S. trade policies.
Canadian government bond yields were mixed, with the 10-year yield steady at 3.249%, reflecting investor caution ahead of key economic data and central bank decisions.