TSX Futures Rise on BoC Rate Hold Bets

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day. 0859 ET - The Canadian dollar falls to an 18-month low against the U.S. dollar after data showed Canada unexpectedly shed jobs again in September. Employers cut 68,300 jobs in September after 41,700 jobs lost in August. Economists in a WSJ survey had expected a 9,000 increase in employment. The data dampen the prospect of the Bank of Canada raising interest rates on Oct. 28. The U.S. dollar rises to 1.4298 Canadian dollars, its highest level since April 2025, compared to 1.4231 before the data, (renae.dyer@wsj.com) 0750 ET - Major economies are expected to experience faster growth, mainly driven by the U.S. AI expansion which is spilling into other industries and economies, J. Safra Sarasin Sustainable Asset Management's Raphael Olszyna-Marzys says in a note. High energy prices are also likely to drive up inflation, causing central banks to raise interest rates, he says. J. Safra Sarasin Sustainable Asset Management forecasts the U.S., U.K., and European Central Banks will raise interest rates to 5.0%, 4.25%, and 3.0%, respectively, by 2027. (miriam.mukuru@wsj.com) 0746 ET - Spain's general election will hinge on the subject of housing, Pablo Muylle at ING says in a note. Expanding protections for tenants can ease the housing crisis, but such measures won't solve the underlying issue of insufficient supply. Administrative bottlenecks and labor shortages have limited the construction of new homes, which has in turn driven up rents. In the upcoming election, the incumbent Socialist party favors rent caps and eviction protection, while the centre-right Popular Party is looking to strip back regulation to encourage investment. Each side holds part of the answer, Muylle says. "Tenant protection has clear social value... But protection primarily determines how an existing shortage is distributed. It cannot, on its own, increase the number of homes." (don.forbes@wsj.com) 0735 ET - The Swiss franc should strengthen further following the sharp widening of spreads in French-German government bond yields, J.P. Morgan analysts say in a note. The low-yielding franc was previously negatively correlated to European spreads widening as it was driven partly by central bank tightening, which encouraged carry strategies, they say. Carry trades involve borrowing in currencies with low yields to invest in currencies with higher yields. The more aggressive widening in spreads recently reflects French debt concerns, causing markets to price in weaker growth and unwind carry trades. As a safe haven, the franc is sensitive to European growth, they say. The euro falls 0.1% to 0.9316 francs, having reached a 10-week low of 0.9258 last week, LSEG data show.(renae.dyer@wsj.com) 0717 ET - Morgan Stanley maintains its exposure to the intermediate segment of the Japanese government bond curve, expecting both shorter- and longer-teno