15.10.202615:27:36UTC+00Canadian Dollar Rises on US Dollar Weakness

The Canadian dollar strengthened beyond C$1.42 per US dollar, rebounding from an 18‑month low of 1.428 on October 12th, supported by broad weakness in the greenback and growing expectations of tighter policy from the Bank of Canada. Robust Canadian manufacturing data reinforced bets on a rate increase at the central bank’s next meeting, with most market participants now anticipating the first hike of the current cycle. Manufacturing sales rose 1.5% month‑over‑month to C$79.9 billion in August 2026, surpassing forecasts for a 1.1% gain and posting the strongest increase since April. However, this upbeat data was at odds with signs of a slowing economy: employment fell by 68,300, compared with expectations for a 7,000 gain, signaling a weaker start to the third quarter. Meanwhile, uncertainty surrounding US‑Canada trade relations continued to weigh on the outlook.