Business · Markets · 13 hrs ago
Canadian dollar lags most major currencies as oil prices fall
The Canadian dollar held near an 18-day low against the US dollar on Monday and lagged most other major currencies.
The currency was little changed at 1.4135 Canadian dollars per US dollar, as oil prices fell and Canadian jobs data tempered expectations for higher interest rates.
Canadian employment fell for a third straight month in October, while unemployment rose to 6.7%, a six-month high.
That contrasts with accelerating US job growth and has helped keep the US dollar strong against the Canadian dollar.
Markets saw a lower chance of a December Bank of Canada rate hike than of a US Federal Reserve increase.
Falling oil prices also weighed on the currency because oil is one of Canada's major exports.
Minutes from the Bank of Canada's October meeting are due Tuesday, offering more detail on the decision to raise rates for the first time in three years.
The Canadian dollar underperformed most major currencies on Monday as oil prices fell.
It was little changed at 1.4135 per US dollar, near an 18-day low.
Canadian employment fell for a third straight month in October, and the jobless rate rose to 6.7%.
The data kept expectations for a Bank of Canada rate hike in December in check.
- Who
- The Canadian dollar and currency-market investors.
- What
- The Canadian dollar underperformed most G10 currencies as oil prices fell.
- When
- Monday, Nov. 9.
- Where
- Canada and currency markets; the dollar was quoted against the US dollar.
- Why
- Falling oil prices and weak Canadian employment data weighed on the currency and reduced expectations of a December Bank of Canada rate hike.
This story does not have two clearly opposing sides.
Canadian data showed employment fell for a third straight month in October and the jobless rate rose to 6.7%.
The Canadian dollar steadied against the US dollar while underperforming most other G10 currencies as oil prices fell.
Minutes from the Bank of Canada's October policy meeting were due to be released.
- Exchange rate
- 1.4135 Canadian dollars per US dollar
- Canadian jobless rate
- 6.7% in October
- Oil price
- US crude futures fell 3.5% to $87.64 a barrel
- December Bank of Canada rate hike odds
- About 40% according to investors
- December Federal Reserve rate hike odds
- 84% according to investors
What people are saying
Diverging employment data releases will likely keep USD-CAD supported above 1.40
(The) rising unemployment rate amid falling wage growth rate in Canada also reduces the market pricing of a December BoC rate hike relative to the Fed