Canadian Dollar Rises Above 1.39 Against US Dollar

According to TradingEconomics, the November jobs report showed a surprising drop in the unemployment rate to 6.5%, the lowest in 16 months, with the number of unemployed decreasing by about 80,000 to nearly 1.5 million people.

Analysts believe this clear improvement in the labor market reflects a reversal of the joblessness experienced in the spring and indicates a contraction in the local economic surplus. Given these developments, it is likely that the Bank of Canada will consider halting its interest rate cuts initiated in October, as it has repeatedly stated that its monetary policy depends on data and will freeze easing if activity and inflation indicators are stronger than expected.

Conversely, markets expect the US Federal Reserve to implement interest rate cuts in December, hinting at further easing next year, which has pressured the US dollar and contributed to strengthening the Canadian dollar.