Canadian Dollar Update, October 9, 2026 – Canadian Dollar looking ahead to Thanksgiving

Canadian Dollar looking ahead to Thanksgiving

• Treasury yields slide and gave a boost to risk sentiment
• US dollar opened mixed after trading in narrow ranges overnight

USDCAD open (6:00 am): 1.4229, overnight range 1.4207-1.4240, close 1.4226, close 1.42, WTI $90.82, Gold $4,186.57.

The Canadian dollar is counting down to a long Thanksgiving weekend as domestic markets will be closed on Monday. The Loonie probed resistance overnight and promptly reversed. Improved global risk sentiment led to a choppy overnight session for the G-10 major currencies and the Loonie went along for the ride.

Canada’s September employment report takes centre stage, with economists pencilling in a modest 7,000 gain after August shed 41,700 positions. The jobless rate is seen ticking up to 6.5% from 6.4%, numbers that won’t do a thing to coax the Bank of Canada off the sidelines in October.

WTI crude wandered through a $90.08-91.40 range, sitting comfortably below this week’s $93.20 high, although the intraday technical picture stays constructive as long as prices hold above $89.70.

Risk appetite perked up on the news. Treasury yields eased, the 30-year auction drew healthy bids and the US dollar index slipped back from yesterday’s 102.42 high.

Asian bourses ended in the green, with Japan’s Topix adding 0.33%, Hong Kong’s Hang Seng climbing 1.79% and Australia’s ASX 200 rising 0.64%.

European equities are broadly higher as of 7:15 am, though they have surrendered some of their early gains. Germany’s DAX has advanced 1.02%, while France’s CAC 40 and Britain’s FTSE 100 are both up 0.94%. S&P 500 futures are 0.34% higher, the 10-year Treasury yield stands at 5.24%, the US Dollar Index sits at 102.18 and gold (XAUUSD) is trading at $4,183.22.

EURUSD edged lower in a 1.1208-1.1243 range, extending a week-long downward lean courtesy of French political and fiscal theatrics that pushed OAT yields higher.

GBPUSD crept higher within a 1.3223-1.3251 band, bouncing off yesterday’s three-month low, although the recovery looks like nothing more than a correction inside the 1.3180-1.3310 corridor that has contained it for two weeks. Lofty gilt yields continue to lean on sterling, while the prospect of a November BoE rate hike keeps a floor beneath it.

USDJPY climbed through a 157.76-158.41 range, shrugging off cheaper crude thanks to recent dovish noises from BoJ officials and bets that the Fed will tighten in December. Japanese household spending fell 3.1% in August, the eighth straight decline, which says plenty about how reluctant consumers are to open their wallets.

AUDUSD eked out gains in a 0.6956-0.6989 range, helped along by a firmer risk tone, softer global bond yields, and a slightly weaker greenback. Next on the radar is Tuesday’s release of the RBA minutes from the September 29 meeting.

The University of Michigan preliminary October Sentiment data is on tap.