Podcast
Our Partnerships
Will Simpson and Greg Wise
December 5, 2025
Episode Six: Our Partnerships
Markets pushed higher this week, with the TSX hitting a fresh all-time high before easing back on Friday. The Canadian benchmark is now up an impressive 27% year-to-date, putting it on track for its second-best year since 1999. Not bad for an economy that was supposed to struggle mightily amid trade uncertainty.
The standout story this week was Canada’s stunning November employment report. Jobs surged by 53,600, marking the third consecutive month of outsized gains, while the unemployment rate plunged 0.4 percentage points to 6.5%. A decline this large has only happened twice in the past 30 years outside of the pandemic. The strength has effectively taken further BoC rate cuts off the table, with some market watchers now speculating the next move could eventually be a hike.
South of the border, the picture looks quite different. U.S. labour market data continued to show signs of cooling, with ADP reporting a 32,000 drop in private payrolls. That is keeping the Fed on track for a third consecutive 25 bps rate cut next Wednesday, taking the fed funds rate down to 3.50%-3.75%.
Bond markets have responded to the diverging central bank paths. Canadian 5-yr yields jumped nearly 30 bps this week to just above 3%, while U.S. 10-yr yields rose 11 bps to 4.13%. The loonie has been a clear beneficiary, rallying for the second straight week to hit 72.2 cents, which is its strongest level in over two months.
All told, next Wednesday’s policy decisions should be straightforward. A Fed cut is baked in, while the Bank of Canada looks set to stay put after leading the easing cycle earlier this year.
If you have any family or friends that we may be able to help, we are here as a resource. We are here working for you.
We want you to be wealthy. We want you to feel wealthy.
We want you to Realize Your Wealth™.
Best,