# Canadian dollar slips as trade tensions, Fed outlook keep loonie under pressure By Investing.com

> The Canadian dollar weakened on Friday, heading for its steepest weekly decline in over two months. A stronger US dollar after Warsh's remarks outweighed strong Q2 GDP growth. Markets raised the odds of a 25-basis-point September Fed hike to about 57.5%.

- Date: 2026-08-28 · published 2026-08-28T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/18124-canadian-dollar-slips-as-trade-tensions-fed-outlook-keep-loonie-under-pressure
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of a Fed hike strengthen the US dollar, raising import costs for dollar-priced feed inputs in Canada. The move is driven by rate expectations rather than a change in agricultural supply.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-02-28 | [USD/CAD – Canadian Dollar Dips, U.S. GDP Beats Expectations \| Investing.com](https://feedsoft.ai/events/60838-usd-cad-canadian-dollar-dips-u-s-gdp-beats-expectations-investing-com.md) | +0.8% | +1.0% |
| DXY | 2018-05-02 | [Fed Likely On Hold, But What About U.S. Dollar? \| Investing.com Canada](https://feedsoft.ai/events/64950-fed-likely-on-hold-but-what-about-u-s-dollar-investing-com-canada.md) | +1.2% | +1.8% |
| DXY | 2016-11-14 | [Canadian dollar falls as investors buy into U.S. under Trump \| CBC News](https://feedsoft.ai/events/74058-canadian-dollar-falls-as-investors-buy-into-u-s-under-trump-cbc-news.md) | +1.4% | +0.8% |
| DXY | 2026-03-31 | [GBP/USD Faces Pressure as UK Stagflation Outlook Weighs on Sterling \| Investing.com](https://feedsoft.ai/events/20429-gbp-usd-faces-pressure-as-uk-stagflation-outlook-weighs-on-sterling-investing.md) | -0.7% | -2.3% |
| DXY | 2024-02-27 | [Australian dollar crushed under US megaboom \| Investing.com AU](https://feedsoft.ai/events/31928-australian-dollar-crushed-under-us-megaboom-investing-com-au.md) | -0.2% | -0.0% |

## Sources

- ca.investing.com: https://ca.investing.com/news/forex-news/canadian-dollar-slips-as-trade-tensions-fed-outlook-keep-loonie-under-pressure-4821473

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.