Last week, it was announced that Canada's labor market data revealed a decrease in employment of only 17.5 thousand people, which is lower than the expected 22.5 thousand. Meanwhile, the unemployment rate increased to 5.7% from 5.5% compared to the previous month. This labor market data will undoubtedly have an impact on the Canadian dollar.

Tim Macklem, the Governor of the Bank of Canada (BoC), mentioned that interest rates in the future are likely to remain at these higher levels.

The non-farm payrolls (NFP) data of the United States, released last week, led investors to anticipate a slowdown in the U.S. economy next year, and the Fed may not need to raise interest rates further.

Furthermore, the U.S. unemployment rate increased to 3.9%, the Purchasing Managers' Index (PMI) for the service sector dropped from 53.6 to 51.8, and the U.S. Department of Labor reported an initial jobless claims figure increasing from 2.12 thousand to 2.17 thousand. These factors are additional indicators suggesting that the Fed may not need to raise interest rates again in the future.