Canadian Dollar Rebounds After Strong Jobs Report

Toronto, Oct. 10, 2025 — The Canadian dollar surged on Friday, reversing a weeklong decline after stronger-than-expected employment data boosted confidence in the economy. Statistics Canada reported that the country added 65,000 new jobs in September, pushing the unemployment rate down to 5.6% — its lowest in six months.

The Bank of Canada, which has been under pressure to cut interest rates, may now hold off as wage growth remains steady. Analysts say the data demonstrates surprising resilience in the labor market, especially in the tech and healthcare sectors.

“Canada’s job market continues to defy global slowdown trends,” said Erin Hutchinson, a senior economist at RBC. “This could give the Bank of Canada the flexibility to maintain its current stance into early 2026.”

The news lifted the loonie to $1.33 per U.S. dollar, its best performance since April, and eased fears of a looming recession.