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Breaking: Canadian Unemployment Rate dropped to 6.5% in November
By FXStreet Team
Date Published: 5 Dec 2025 | Date Modified: 5 Dec 2025
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Statistics Canada reported on Friday that the unemployment rate edged lower to 6.5% in November, much lower than what markets were expecting.
- The Unemployment Rate in Canada eased to 6.5% last month.
- USD/CAD deflates to fresh lows near 1.3900, flirting with its 200-day SMA.
Statistics Canada reported on Friday that the unemployment rate edged lower to 6.5% in November, much lower than what markets were expecting.
Employment unexpectedly increased by 53.6K jobs, adding to the big 66.6K jump registered in October. In addition, the participation rate nudged down from 65.3% to 65.1%, and wages are still growing at a 4.0% annual pace, unchanged from the month before.
Market reaction
The Canadian Dollar (CAD) maintains its positive bias following the publication of the jobs report on Friday, dragging USD/CAD to the 1.3900 region, levels last visited in late September.
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | -0.14% | 0.06% | -0.34% | -0.42% | -0.24% | -0.05% | |
| EUR | 0.04% | -0.11% | 0.09% | -0.30% | -0.38% | -0.20% | -0.01% | |
| GBP | 0.14% | 0.11% | 0.19% | -0.19% | -0.27% | -0.09% | 0.10% | |
| JPY | -0.06% | -0.09% | -0.19% | -0.38% | -0.47% | -0.30% | -0.10% | |
| CAD | 0.34% | 0.30% | 0.19% | 0.38% | -0.09% | 0.09% | 0.30% | |
| AUD | 0.42% | 0.38% | 0.27% | 0.47% | 0.09% | 0.18% | 0.37% | |
| NZD | 0.24% | 0.20% | 0.09% | 0.30% | -0.09% | -0.18% | 0.19% | |
| CHF | 0.05% | 0.00% | -0.10% | 0.10% | -0.30% | -0.37% | -0.19% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
This section below was published as a preview of the Canadian labour market report at 07:00 GMT.
- The Canadian Unemployment Rate is seen edging higher in November.
- Extra cooling of the labour market could reinforce additional rate cuts.
- The Canadian Dollar maintains its recovery in place so far this week.
Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a weak print. The Unemployment Rate is expected to tick higher to 7% in November, while the Employment Change is forecast to come in flat after a nice gain in October.
A weaker report could strengthen the case for the Bank of Canada (BoC) to continue its easing cycle next week after cutting its policy rate by 25 basis points to 2.25% at its October 29 gathering, following the September rate reduction.
The Bank of Canada cut its benchmark rate by 25 basis points to 2.25% in late October; no surprises there. In addition, policymakers said they think rates are now roughly where they need to be to keep inflation near target while still giving the economy a bit of support as it works through the fallout from the US-driven trade war.
Markets do not expect the central bank to lower interest rates next week, while implied rates suggest a marginal tightening by the end of 2026.
What can we expect from the next Canadian Unemployment Rate print?
Consensus among market participants projects a slight rise in Canada’s Unemployment Rate to 7% last month, up from October’s 6.9%. Additionally, investors forecast the economy will add no jobs in November, reversing October’s 66.6K increase. It is worth recalling that Average Hourly Wages rose at an annualised 4% in October, pointing to sticky wage inflation.
According to analysts at TD Securities: “The November jobs report will provide the main risk for events this week, with TD and the market looking for the labour market to give back some recent strength as the unemployment rate edges higher to 7.0%.”
When is the Canada Unemployment Rate released, and how could it affect USD/CAD?
All eyes in Canada will be on Friday’s GDP release, due at 13:30 GMT. A stronger print could give the Canadian Dollar (CAD) a quick lift, but don’t expect fireworks.
USD/CAD has been on a steady decline almost entirely to the tune of the US Dollar (USD) lately, and that story is still all about the timing of further easing by the Federal Reserve (Fed).
Pablo Piovano, Senior Analyst at FXStreet, points out that the CAD has clawed back a bit of ground since its lows late in the previous month, nudging USD/CAD back below the key 1.4000 support. He also notes that the technical setup still leans toward further losses if spot manages to clear its key 200-day SMA at 1.3913.
From here, Piovano says a return of bullish momentum could send USD/CAD up to test the November high at 1.4140 (November 5), and if that breaks, the next target would be the April peak at 1.4414 (April 1).
On the flip side, he highlights initial support at the December floor of 1.3925 (December 4), followed by that key 200-day SMA. A clean break lower would put the October base at 1.3887 (October 29) on the radar, ahead of the September trough at 1.3726 (September 17) and the July valley at 1.3556 (July 3).
“Momentum favours extra declines,” he adds, noting that the Relative Strength Index (RSI) is hovering near 40 and the Average Directional Index (ADX) around 21 suggests the underlying trend appears to be gathering traction.
Bank of Canada FAQs
The Bank of Canada (BoC), based in Ottawa, is the institution that sets interest rates and manages monetary policy for Canada. It does so at eight scheduled meetings a year and ad hoc emergency meetings that are held as required. The BoC primary mandate is to maintain price stability, which means keeping inflation at between 1-3%. Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Canadian Dollar (CAD) and vice versa. Other tools used include quantitative easing and tightening.
In extreme situations, the Bank of Canada can enact a policy tool called Quantitative Easing. QE is the process by which the BoC prints Canadian Dollars for the purpose of buying assets – usually government or corporate bonds – from financial institutions. QE usually results in a weaker CAD. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The Bank of Canada used the measure during the Great Financial Crisis of 2009-11 when credit froze after banks lost faith in each other’s ability to repay debts.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the Bank of Canada purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the BoC stops buying more assets, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Canadian Dollar.
Interest rates FAQs
Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%. If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.
Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money.
Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank. If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold.
The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure. Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.
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