USD/CAD near one-month high as CAD starts 2026 weak – BBH

FXStreet Insights Team FXStreet

The Canadian Dollar (USD) is under pressure at the start of 2026, with USD/CAD approaching 1.3900 ahead of today’s December labor force survey, BBH FX analysts report.

CAD vulnerable amid mixed labor market signals

"CAD has started the year as one of the worst performing major currencies with USD/CAD near a one month high, just under 1.3900."

"Canada December labor force survey is due today. The economy is expected to lose -2.5k jobs after surprising with strong gains of 53.6k in November, 66.6k in October, and 60.4k in September. The Bank of Canada is done easing, limiting CAD undershoots. The swaps curve price-in 70% odds of a 25bps rate increase to 2.50% over the next twelve months."

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