financetom
News
financetom
/
News
/
Loonie declines against most major rivals after jobs data that reduced rate hike bets
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Loonie declines against most major rivals after jobs data that reduced rate hike bets
May 8, 2026 11:21 AM

The Canadian dollar weakened against all G10 currencies on Friday after domestic data showed an unexpected decline in employment, prompting investors to scale back bets on further interest rate hikes by the Bank of Canada this year.

The Canadian dollar, known as the loonie, fell 0.2% to 1.3690 against the US dollar, or 72.99 US cents, after touching its weakest level since April 29 at 1.3710 during the session. It was the only G10 currency to post losses against the US dollar.

On a weekly basis, the Canadian dollar declined 0.7% after four consecutive weeks of gains.

Data showed that the Canadian economy lost 17,700 jobs during April, while the unemployment rate rose to a six-month high of 6.9%, signaling continued weakness in the labor market amid pressure from trade uncertainty. Analysts had expected the economy to add 15,000 jobs.

Karl Schamotta, chief market strategist at Corpay, said in a note: The Canadian dollar is weakening as traders reduce expectations for monetary policy tightening that had previously been priced into interest rate curves, while yield differentials continue to favor the US dollar.

He added: We believe signs of stabilization will emerge over the coming months as trade uncertainty eases and downside momentum in the housing market begins to slow, but todays data points to a long and difficult road ahead for the Canadian economy.

Investors reduced expectations for Bank of Canada monetary tightening to 38 basis points by December, down from 44 basis points before the data release.

The central bank had indicated last week that it might be forced to implement consecutive interest rate increases if elevated oil prices continue pushing inflation higher.

Meanwhile, US employment data showed continued strength in the labor market, reinforcing expectations that the Federal Reserve will keep interest rates unchanged for some time.

Oil prices rose 0.9% to $95.64 per barrel after renewed clashes near the Strait of Hormuz raised fresh questions about the ceasefire agreement between the United States and Iran. Oil is one of Canadas key exports.

Canadian government bond yields also declined across the yield curve, with the 10-year bond yield falling 4.1 basis points to 3.483%.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Yen deepens losses to eight-week trough as inflations slows
Yen deepens losses to eight-week trough as inflations slows
Sep 28, 2025
The Japanese yen fell in Asian markets on Friday against a basket of major and minor currencies, deepening losses for the third consecutive day against the US dollar and hitting its lowest level in eight weeks. It is heading toward its biggest weekly loss in nearly two and a half months, as selling pressure on the currency continues in the...
US dollar maintans gains ahead of crucial expenditures data
US dollar maintans gains ahead of crucial expenditures data
Sep 28, 2025
The dollar held steady against the euro and the British pound on Friday, maintaining strong gains as investors awaited US consumer spending data, after growth figures came in better than expected, reducing expectations for further Federal Reserve easing this year. The euro traded near a three-week low at $1.1669, while the pound stabilized at $1.3347 after hitting its lowest in...
Euro about to mark weekly loss amid negative pressures
Euro about to mark weekly loss amid negative pressures
Sep 28, 2025
The euro rose in the European market on Friday against a basket of global currencies, attempting to recover from a three-week low against the US dollar, supported by notable buying activity from lower levels. Despite this rebound, the single currency is heading toward its first weekly loss in a month, amid growing negative pressure, especially the broad strength of the...
Asteroid mining: A multi-trillion dollar resource race
Asteroid mining: A multi-trillion dollar resource race
Sep 28, 2025
Imagine bringing back vast quantities of platinum, gold, and rare metals enough to fund every Americans wildest dreams, or perhaps collapse the global economy overnight. This is the high-stakes gamble NASA and a wave of innovative US startups are taking as they chase the untapped riches of asteroids. As NASAs Psyche probe speeds toward its 2029 rendezvous with the metallic...
Copyright 2023-2026 - www.financetom.com All Rights Reserved