CAD to USD: Canadian dollar hits eight-week high
- By Reuters -
- Aug 07, 2026
OTTAWA: The Canadian Dollar (CAD) strengthened to an eight-week high against US Dollar (USD) on Friday as stronger-than-expected domestic jobs data contributed to narrower yield spreads between the U.S. and Canada.
The loonie was trading 0.6% higher at 1.3935 per U.S. dollar, or 71.76 U.S. cents, its strongest intraday level since June 11. For the week, the currency was on track to gain 0.6%.
Canadian employment rose by 75,100 jobs in July, far exceeding expectations for a gain of 16,500, while the unemployment rate fell to a two-year low of 6.4%. “Today’s report suggests that growth momentum seen in the second quarter may have carried on into the start of Q3,” said Andrew Grantham, senior economist at CIBC Capital Markets, in a note.
Recent preliminary data has pointed to Canada’s economy growing by 3.4% in the second quarter.
Bond yields struggled for direction immediately after the release, as the stronger-than-expected Canadian data contrasted with a much weaker-than-anticipated U.S. payrolls report, Grantham noted. The U.S. economy unexpectedly shed jobs in July, and nonfarm payrolls for the prior two months were revised sharply lower, raising questions about whether the Federal Reserve will increase interest rates next month. The U.S. dollar lost ground against a basket of major currencies.
The price of oil, one of Canada’s major exports, was trading 0.5% higher at $77.64 a barrel as investors weighed signals that Gulf states and Iran were closing in on a deal to reopen the Strait of Hormuz. Canadian bond yields rose across a flatter curve. The 2-year yield was up 2.3 basis points at 2.951%, while the gap between it and the U.S. equivalent narrowed by 8.3 basis points to about 123 basis points in favor of the U.S. note.