Weak jobs data; Canadian dollar on track for worst weekly performance since September.

Weak Canadian employment data have deepened market concerns about the country's economic outlook, putting the loonie on track for its biggest weekly decline since late September. The Canadian dollar fell 0.7%, dropping sharply amid broad US dollar strength, with the weekly loss potentially reaching 1.1%. Data showed Canada's October unemployment rate edged up to 6.7% and employment fell by 4,700, the third consecutive monthly decline, extending the loonie's slide. Released alongside the Canadian data were strong US October employment figures, reinforcing market bets on a Federal Reserve rate hike next month. "The Canadian jobs report is clearly bearish for the loonie, with weakness in full-time and private-sector employment indicating the underlying labor market is softening," said Sarah Ying, head of FX strategy at CIBC. "As rate expectations in Canada and the US diverge further, we believe the risks for USD/CAD remain skewed to the upside"meaning a weaker loonie.