Canadian Dollar Weakens as Employment Data Reduces Rate Hike Expectations
The Canadian dollar experienced a decline against all other Group of 10 currencies following the release of domestic employment data showing a surprise drop in jobs. The loonie fell 0.2% to 72.99 U.S. cents, marking its weakest level since April 29. This decline was attributed to the loss of 17,700 jobs in April, which pushed the unemployment rate to a six-month high of 6.9%. The unexpected job losses led investors to lower their expectations for interest rate hikes by the Bank of Canada, with predictions for tightening reduced from 44 to 38 basis points by December. The Canadian economy's struggles were highlighted by trade uncertainties and a weak labor market, contrasting with the U.S. where employment data indicated labor market resilience. 
