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Loonie Falls, Jobs Lost; BoC Holds Rates, Unemployment 6.9%

5/15/2026

23 2 Full Breakdown

Summary

Loonie Slides

The Canadian loonie fell 0.1% to 1.3705 per U.S. dollar, extending a six-day slide.
Canada lost 17,700 jobs in April, pushing the unemployment rate to a six-month high of 6.9%.
Oil settled 1.1% lower at $101.02 a barrel, easing inflation expectations.
The Bank of Canada kept rate at 2.25% for April 29, while investors expect hikes December after a figure rose to 577% from a high of 3.610%.

Summary

BoC Cautions

The Bank of Canada’s council said uncertainty was unusually elevated, urged nimble policy because of Iran war, USMCA review, and noted that Governor Tiff Macklem added tightening depends on energy investment, Canadian dollar’s exchange-rate.
Minutes called 2.25% rate stimulative, said inflation could peak 3% in April after CPI rose from 1.8% to 2.4%, GDP growth of 1.2% in 2026, 1.6% in 2027 and 1.7% in 2028, and expects moves on June 10.

History

Historical Context

Founded in 1934 to protect Canada’s currency, the Bank of Canada cut its policy rate to a historic 0.25% in April 2008, sparking a loonie slump and 8.3% unemployment as oil fell to $40 a barrel. Today Governor Tiff Macklem faces Iran-Israel tensions and USMCA talks, with a possible December rate hike shaping inflation and the dollar.

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Loonie Slides

The Canadian loonie fell 0.1% to 1.3705 per U.S. dollar, extending a six-day slide.
Canada lost 17,700 jobs in April, pushing the unemployment rate to a six-month high of 6.9%.
Oil settled 1.1% lower at $101.02 a barrel, easing inflation expectations.
The Bank of Canada kept rate at 2.25% for April 29, while investors expect hikes December after a figure rose to 577% from a high of 3.610%.

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