TORONTO, September 6, 2026, 4:44 p.m. EDT
One Canadian dollar was worth 72.25 U.S. cents in the Bank of Canada’s September 4 daily average. That makes C$1,000 equal to US$722.54 before fees. In the other direction, US$1,000 cost C$1,384.
Friday’s jobs reports appeared to favor the U.S. dollar. Canada lost 42,000 jobs in August, while U.S. payrolls grew by 162,000. Even so, the loonie ended the week 0.19% stronger than Monday on the official averages.
The mismatch matters for anyone converting cash or owning U.S. assets without a currency hedge. It also leaves a clean test: can the labour gap push the Canadian dollar below last week’s 71.96-cent low?
The loonie stayed inside a 0.56-cent range
U.S. cents per C$1, based on official daily averages
As of . Bank of Canada USD/CAD observations: 1.3866, 1.3896, 1.3863, 1.3789 and 1.3840. CAD/USD values are the mathematical inverse. Source: Bank of Canada.
The jobs gap now favors the U.S. dollar
Statistics Canada reported a 42,000 decline in August employment. The jobless rate held at 6.4%, but fewer people participated in the labour force. Average hourly wage growth slowed to 2.0% from 2.8% in July.
The U.S. report ran the other way. The Bureau of Labor Statistics counted 162,000 new payroll jobs. Unemployment stayed at 4.1%, and wages rose 3.1% from a year earlier.
That contrast reinforces an existing yield disadvantage. The Bank of Canada’s 2.25% policy rate sits 1.25 to 1.50 percentage points below the Federal Reserve’s 3.50% to 3.75% target range. Higher short-term U.S. rates can make unhedged dollar cash more attractive.
Friday’s move fit that direction. The loonie fell 0.37% from Thursday’s 72.52-cent average. It did not erase the week’s gain.
Inflation keeps Ottawa from following the jobs print
The weak employment number does not guarantee a Canadian rate cut. The Bank of Canada held at 2.25% on September 2. It said inflation had hovered near 3%, largely because gasoline remained expensive.
Governor Tiff Macklem acknowledged “continued excess supply” in the economy. He also said high oil prices and tariffs had raised inflation risks. Those pressures pull policy in opposite directions.
There was some resilience inside Canada’s report. Manufacturing added 22,000 jobs. The latest central-bank statement also put second-quarter GDP growth at 3.3%, after a weak first quarter.
The currency therefore carries more than one labour-market story. Oil, tariffs, U.S. rates and broad dollar demand can overwhelm a single payroll release.
A 0.56-cent range sets the next test
The week’s weakest Canadian-dollar reading was 71.96 U.S. cents on September 1. That equals USD/CAD 1.3896. A sustained move below 71.96 cents would confirm fresh loonie weakness.
September 3 supplied the opposite boundary. The Canadian dollar reached 72.52 U.S. cents, or USD/CAD 1.3789. A move above that level would show that inflation, oil or U.S.-dollar selling still outweigh the jobs gap.
The endpoints change a C$10,000 conversion by about US$55.84. Retail spreads can cost more. A 1% markup, for example, would lift the Canadian-dollar cost of US$1,000 from C$1,384 to C$1,397.84.
The Bank’s figures are indicative market averages. They are not retail quotes, transaction prices or forecasts.
Holiday trading can distort the first move
Both countries observe Labour Day on Monday, September 7. TMX says Toronto’s exchanges will reopen Tuesday. NYSE markets are also closed Monday.
Foreign exchange can still trade globally. North American holiday liquidity may make an early move less reliable, especially before Canadian and U.S. cash markets return Tuesday.
The next scheduled Bank of Canada decision is October 28. The Federal Reserve acts sooner, at 2 p.m. EDT on September 16, with new economic projections and a 2:30 p.m. press conference on its official calendar.
Until then, last week’s two boundaries give the clearest signal. Below 71.96 U.S. cents, the jobs and rate gaps are taking control. Above 72.52, other forces are still absorbing them.
