FX.co ★ Loonie Firms Slightly

The Canadian dollar experienced a modest increase, trading just below 1.40 against the US dollar. This movement comes in the context of a softer US dollar and as market participants evaluate the impact of the recent September labor force survey on future interest rate decisions. In September 2025, Canada's unemployment rate remained stable at 7.1%, marginally lower than the anticipated 7.2% but continuing to reflect the highest rate since August 2021. Concurrently, employment figures exceeded predictions. Currently, markets are fully anticipating a 25 basis point interest rate cut by the end of the year.