The Canadian dollar weakened on Friday after an unexpectedly sharp decline in employment reinforced concerns about the domestic economy and reduced expectations for a Bank of Canada interest-rate hike this month. Canada's economy lost 68,300 jobs in September, Statistics Canada reported, sharply missing economists' expectations for a gain of 9,200 positions, following a loss of 41,700 jobs in August and bringing employment losses to 110,000 over two months, while the unemployment rate rose to 6.5% from 6.4%. The disappointing report complicated the Bank of Canada's policy outlook ahead of its October 28 meeting, as a weakening labour market could discourage policymakers from raising interest rates even as persistent inflation risks and elevated energy prices remain concerns. Job losses were concentrated in the public sector, particularly healthcare, social assistance and education, while manufacturing employment declined by 12,700 positions and employment among young people aged 15 to 24 fell by 48,000. Average hourly wages for permanent employees rose 2.3% year over year in September, accelerating from 2.0% in August, and oil prices also weighed on the currency as Brent crude fell towards $103 a barrel and U.S. West Texas Intermediate traded near $91 after U.S. President Donald Trump said Washington would not attack Iran before the November midterm elections.
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NVIDIA CorporationSurprise September job losses and rising unemployment reduce odds of a Bank of Canada rate hike, weakening the Canadian dollar.
