USD/CAD

USD/CAD trims part of its earlier decline on Monday as the US Dollar (USD) regains ground after opening the week lower. The Canadian Dollar (CAD) struggles to attract buyers as differing monetary policy expectations for the Federal Reserve (Fed) and the Bank of Canada (BoC) favour the Greenback.

The US Dollar (USD) has opened the week with a mild bearish tone against the  Canadian Dollar (CAD), with trading volumes at low levels as the Japanese markets are closed on bank holidays and with the US and Canada also celebrating festivities.

The USD/CAD pair struggles to capitalize on a modest gap-up open at the start of a new week, retreating back to mid-1.4200s during the Asian session.

Canada lost 68.3K jobs in September against a forecast for a 7K gain, and with August's 41.7K loss it has given back all of its net job gains for 2026.

Royal Bank of Canada (RBC) economist Claire Fan notes Canada lost 68,000 jobs in September, mainly in public sectors, reversing much of summer gains and leaving year-to-date employment at -41,000. She highlights volatility in monthly data and stresses the unemployment rate remains below last year. Fan expects earlier labour market progress to hold and the unemployment rate to edge lower through 2026.

USD/CAD climbs on Friday as the Canadian Dollar (CAD) weakens sharply following a disappointing domestic employment report. A firm US Dollar (USD) provides additional support to the pair. At the time of writing, USD/CAD trades around 1.4276, at levels last seen in April 2025.