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“The shift has been relatively dramatic with the market having been pricing in an 8% probability of a hike just two sessions ago,” said Camilla Sutton, chief FX strategist at Scotiabank. “Weaker than expected employment combined with falling oil prices is taking its toll on BoC expectations and CAD.”

Oil prices have retreated more than 50% in the past six months, which has further hurt what had already been tepid economic growth in Canada during the past year.

Canada’s labour market continued to cool off in December, with data from Statistics Canada showing 4,300 jobs were lost in December after a loss of 10,700 jobs in November. Economists had called for a gain of 15,000 jobs in the final month of the year.

There are also signs that lower oil prices are already hitting Calgary’s housing market, which up until last year was one of Canada’s hottest.

Calgary Real Estate Board data show sales in January are down 34% from a year ago, while listings rose 22%. That follows a Canada Mortgage and Housing Corp. report last week that showed new housing construction starts fell 10% this month in the Prairie provinces.