Recent Canadian employment data showing a surprise loss of 68,300 jobs in September, pushing unemployment to 6.5%, has reinforced expectations that the Bank of Canada will hold its overnight rate at 2.25% through year-end. This contrasts with the Federal Reserve’s hawkish tilt, including a September 25-basis-point hike and signals of further tightening, widening the policy rate differential to roughly 150-175 basis points in favor of the USD. Elevated U.S. Treasury yields near 4.8-5.3% on the two- and ten-year notes, combined with persistent inflation concerns ahead of the October 14 CPI release, have supported USD strength and kept USD/CAD near 1.42-1.43 levels. Oil price volatility and U.S.-Canada tariff uncertainties add further pressure on the loonie, with the BoC’s October 28 decision and upcoming inflation prints serving as near-term catalysts for trader positioning.