# Canadian Dollar weakens as Fed’s cautious tone boosts US Dollar demand

> The Canadian dollar weakened against the US dollar on Friday as the Fed's cautious guidance after its second 25bp cut reduced expectations for another cut this year. Canada's GDP contracted 0.3% month on month in August, missing expectations for flat growth. The US Dollar Index traded near three-month highs around 99.75.

- Date: 2025-10-31 · published 2025-10-31T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/22647-canadian-dollar-weakens-as-fed-s-cautious-tone-boosts-us-dollar-demand
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A firmer US dollar and weaker loonie raise the cost of Canadian-currency inputs for buyers priced in USD and can shift Canadian export competitiveness for feed grains and meals, though the effect on feed prices is indirect.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- fxstreet.com: https://www.fxstreet.com/news/canadian-dollar-weakens-as-feds-cautious-tone-boosts-us-dollar-demand-202510311447

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