# Higher U.S. rates continue weighing on the loonie

> BMO Capital Markets' FX strategist said the Canadian dollar could fall to around 69 US cents as US growth outperforms Canada and rate policy diverges. He argued that interest rate expectations now drive currency markets more than geopolitics or energy prices. He also expected the Fed to raise rates before cutting them.

- Date: 2026-06-26 · published 2026-06-26T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/19047-higher-u-s-rates-continue-weighing-on-the-loonie
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A forecast of further loonie weakness, driven by Fed hike expectations, implies continued upward pressure on USD/CAD. This would make Canadian oilseed exports cheaper for dollar-based buyers.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- bnnbloomberg.ca: https://www.bnnbloomberg.ca/investing/market-outlook/2026/06/26/market-outlook-stronger-us-dollar-keeps-pressure-on-the-loonie/

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