The Canadian dollar fell against the US dollar on Friday. This happened after data showed a drop in jobs. This made people think the Bank of Canada might cut interest rates.
The economy lost 33,000 jobs in March, much worse than expected. The Canadian dollar also fell due to a big drop in the oil market.
Oil prices went down by 7.5%.
This put more pressure on the loonie.
Canadian economy faces new challenges
The 10-year bond yield also hit a near two-year low, showing that investors are worried about the economy. The job reports and low oil prices have made experts think the Bank of Canada might lower rates.
They want to help the economy. An economist at a big bank said, “With the job market showing signs of weakness and oil prices under significant pressure, the probability of a rate cut by the Bank of Canada has increased.
The ups and downs in the currency and commodity markets show the challenges the Canadian economy is facing. Experts are watching closely for any signs from the central bank about possible policy changes.
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