U.S. Dollar Jumps 0.78% Against Canadian Dollar After Diverging Jobs Data
Key Facts
The U.S. dollar rose 0.78% against the Canadian dollar to around 1.4120 on November 6 after employment reports from both countries were released, according to an FXStreet report. The move came as the United States recorded an increase in nonfarm payrolls, while Canadian employment fell modestly. U.S. data showed the unemployment rate was 4.1% in October, with the number of unemployed remaining at 7.1 million. The stronger U.S. jobs reading coincided with higher Canadian unemployment, setting the backdrop for the currency move after the two reports were released.
U.S. nonfarm payrolls rose by 165,000 in October, exceeding the average monthly gain of 48,000 over the previous 12 months, according to the Bureau of Labor Statistics. The increase was concentrated in professional and business services, which added 70,000 jobs; health care, which added 42,000; and transportation and warehousing, which added 25,000. In contrast, the unemployment rate held at 4.1%, and the number of unemployed changed little at 7.1 million. The labor force participation rate remained at 61.9%, and the employment-population ratio held at 59.3%. The bureau said these two measures had shown little net change since January.
The Bureau of Labor Statistics revised its estimates for the previous two months upward, raising August payrolls to 186,000 from 133,000 and September payrolls to 60,000 from 29,000. Employment in August and September was therefore 84,000 higher in total than previously estimated. The revisions came alongside October's increase, adding stronger figures than earlier estimates had indicated for the months concerned to the picture of U.S. jobs. October data also showed an increase of 339,000 in the number of people working part time for economic reasons, to 4.8 million. That figure includes people who would have preferred full-time work, the bureau said.
In Canada, employment fell by 4,700 jobs in October, while market forecasts had pointed to an increase of 13,600, according to FXStreet. The unemployment rate rose to 6.7% from 6.5% in September, contrary to expectations that it would remain unchanged. However, the decline was smaller than September's loss of 68,300 jobs, according to the same source. This reflects a contrast between October's weaker-than-expected reading and the scale of the previous month's loss.
Before October's data were released, the Canadian dollar moved in the previous session, falling 0.1% on Thursday, November 5, to 1.3985 per U.S. dollar, or 71.51 U.S. cents, according to a Reuters report. The currency pared gains from a seven-week high of 1.3927 per U.S. dollar, reached on Wednesday, November 4. After the two employment reports were released on November 6, FXStreet recorded a rise in the U.S. dollar against the Canadian dollar to around 1.4120. Looking ahead, the Bureau of Labor Statistics scheduled the release of its U.S. employment report for November for December 4, 2026, at 08:30 a.m. Eastern Time. That date is part of the bureau's official release schedule.