Loonie Tumbles as Canada's Jobs Report Falls Short

The Canadian dollar weakened to around 1.39 per USD following the release of domestic and US employment data.

Canada's job market showed a decline in August, with employment falling by 41,700, missing expectations for a 15,000 increase.

This disappointing labor data could lead to a more dovish stance from the Bank of Canada (BoC), keeping interest rates lower than expected.

In contrast, US payrolls increased by 162,000, exceeding consensus estimates and boosting expectations for a September Fed rate hike.

The strong US jobs report widened the interest-rate differential between the two countries, favoring the US dollar over the Canadian dollar.