Canadian Dollar futures fell to an 18-month low as unexpected job losses in Canada weighed on market sentiment. Statistics Canada reported September employment dropped by 68,300, defying expectations for a gain of 9,200, while the unemployment rate climbed to 6.5%. Labor force participation declined to 64.8%, its lowest level since 1997 outside of the pandemic. The weak labor market data pushed back Bank of Canada rate hike expectations, with money markets pricing out an October rate increase. Meanwhile, CME Group's FedWatch Tool indicates higher probability for a December FOMC rate hike in the U.S., creating a divergence in monetary policy outlooks that continues to exert downward pressure on the Canadian dollar.