Canadian Dollar Falls to 18-Month Low After Job Losses
- The Canadian dollar fell to an 18-month low against the U.S.
- The Canadian currency declined following employment figures that showed a sharp and unexpected drop in hiring.
- 10, 2026, showed the country's unemployment rate ticked up to 6.5% in September.
The Canadian dollar fell to an 18-month low against the U.S. dollar on Oct. 10, 2026, trading at 1.4267 Canadian dollars per U.S. dollar, Allnews reported. Such a gap has not been observed since April 2025.
Surprise Job Losses Drive Currency Down
The Canadian currency declined following employment figures that showed a sharp and unexpected drop in hiring. Kevin Ford, an analyst at platform Convera, noted a very bad surprise regarding employment in Canada, according to Allnews.
Official data published on Oct. 10, 2026, showed the country’s unemployment rate ticked up to 6.5% in September. The economy recorded 68,000 net job losses during the period following a decline the previous month, defying analyst expectations for a rebound.
Labor Market Deterioration and Central Bank Outlook
Job losses hit young workers aged 15 to 24 and women hardest, specifically within the education, health, and manufacturing sectors. Nick Rees, an economist at Monex USA, stated that this report should end the debate regarding the upcoming October meeting of the Bank of Canada, Allnews reported.
We are witnessing a deterioration of the labor market. Granted, companies are not yet carrying out massive layoffs, but they are not hiring either.
Nick Rees
Analysts indicate that ongoing commercial conflict with the United States is expected to weigh on Canadian economic activity. This economic environment is projected to pressure the central bank into keeping its monetary policy steady in the immediate term.
Upcoming Inflation Data Ahead of October Policy Decision
Higher benchmark interest rates generally favor a national currency, whereas economic support policies tend to weaken it. Before the Bank of Canada convenes on Oct. 28, 2026, an official inflation report is scheduled for release.
That upcoming inflation data could reignite discussions surrounding the institution’s next policy decision. Meanwhile, the U.S. dollar headed toward its fifth weekly gain on Oct. 10, 2026, supported by budget questions in Europe that weakened the single currency.