Canada Sheds 68,000 Jobs in September, Pressuring CAD Against USD

Key Facts

1Canada lost 68,300 jobs in September, significantly missing expectations for a 9,200 gain.

2The Canadian unemployment rate rose to 6.5% while the labor force participation rate fell to 64.8%.

3The USDCAD pair failed to sustain a breakout above the 1.42928 resistance level despite the weak data.

The Canadian economy lost 68,300 jobs in September, significantly missing market expectations for a 9,200 gain. Investinglive.com reported that the unemployment rate rose to 6.5% as the labor force participation rate fell to 64.8%. The contraction was broad-based, with full-time employment down by 35,400 and part-time positions falling by 32,900, bringing the total job losses over the last two months to 110,000.

The USDCAD pair failed to sustain a breakout above the 1.42928 resistance level despite the weak employment data. According to investinglive.com, the pair reached a high of 1.4298 before slipping back, while technical support remains focused on the 100-hour and 200-hour moving averages at 1.42415 and 1.4232. This labor market weakness continues to fuel expectations regarding the Bank of Canada's upcoming monetary policy path.