# Canadian dollar pares monthly decline as rate hike bets climb - The Globe and Mail

> The Canadian dollar strengthened against the U.S. dollar after first-quarter GDP grew 3.1% annualized, beating the 2.5% forecast. Money markets raised the odds of a Bank of Canada hike at its next meeting to about 40%. U.S. crude settled nearly 2% lower at $68.09 a barrel.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/36178-canadian-dollar-pares-monthly-decline-as-rate-hike-bets-climb-the-globe-and-mail
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Stronger Canadian growth and higher rate-hike odds support the loonie, while weaker oil on China demand worries pressures the commodity-linked currency. For feed buyers, the currency move affects Canadian grain and canola export competitiveness only marginally.

## Read by commodity

- WTI: bearish ▼
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-04-17 | [Canadian dollar slips, pressured by Fed rate hike bets - The Globe and Mail](https://feedsoft.ai/events/36641-canadian-dollar-slips-pressured-by-fed-rate-hike-bets-the-globe-and-mail.md) | -5.7% | -15.2% |
| WTI | 2023-02-01 | [Canadian dollar posts 2½-month high as stocks rally after Fed rate hike - The Globe and Mail](https://feedsoft.ai/events/37580-canadian-dollar-posts-21-2-month-high-as-stocks-rally-after-fed-rate-hike-the.md) | -2.2% | -1.7% |
| WTI | 2022-12-07 | [Canadian dollar holds near one-month low as Bank of Canada rate hike boost fades - The Globe and Mail](https://feedsoft.ai/events/38459-canadian-dollar-holds-near-one-month-low-as-bank-of-canada-rate-hike-boost.md) | +0.5% | -0.8% |
| WTI | 2023-05-18 | [Canadian dollar falls as BoC’s Macklem resists validating rate hike bets - The Globe and Mail](https://feedsoft.ai/events/36189-canadian-dollar-falls-as-boc-s-macklem-resists-validating-rate-hike-bets-the.md) | +2.1% | -3.0% |
| WTI | 2020-05-27 | [Canadian dollar advances to 2½-month high as risk appetite climbs - The Globe and Mail](https://feedsoft.ai/events/53359-canadian-dollar-advances-to-21-2-month-high-as-risk-appetite-climbs-the-globe.md) | +6.6% | +16.8% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/market-news/article-canadian-dollar-pares-monthly-decline-as-rate-hike-bets-climb/

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