# Why inflation in the U.S. is a problem for the Bank of Canada

> BMO Capital Markets says recent U.S. data have kept the Federal Reserve on a higher-for-longer path, with markets pricing at least three more quarter-point hikes that would lift the terminal rate to 5.25%-5.50%. The U.S. dollar has rebounded to its highest level of 2023, and the Canadian dollar has weakened alongside it.

- Date: 2023-02-27 · published 2023-02-27T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/37582-why-inflation-in-the-u-s-is-a-problem-for-the-bank-of-canada
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger U.S. dollar and higher U.S. rates weigh on dollar-priced commodities and pressure the loonie, which can raise the cost of Canadian grain and oilseed imports while lowering Canadian export prices in local currency. The Bank of Canada may face pressure to hike again.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-11-14 | [Morning Bid: A twist in the U.S.'s inflation tale?](https://feedsoft.ai/events/11854-morning-bid-a-twist-in-the-u-s-s-inflation-tale.md) | -0.1% | -0.0% |
| DXY | 2017-02-02 | [Bank of England Says Inflation’s OK, Pound Tumbles - WSJ](https://feedsoft.ai/events/72733-bank-of-england-says-inflation-s-ok-pound-tumbles-wsj.md) | -0.2% | +0.4% |
| DXY | 2017-05-30 | [Inflation is the Key \| OANDA](https://feedsoft.ai/events/71216-inflation-is-the-key-oanda.md) | -0.4% | -0.6% |
| DXY | 2023-10-03 | [Peeling the inflation onion, revisited \| Bank for International Settlements](https://feedsoft.ai/events/33533-peeling-the-inflation-onion-revisited-bank-for-international-settlements.md) | -0.1% | +0.6% |
| DXY | 2023-09-08 | [Why the US Fed's interest rate pause is a win for dollar bulls \| The National](https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national.md) | -0.6% | +1.6% |

## Sources

- ca.finance.yahoo.com: https://ca.finance.yahoo.com/news/why-inflation-us-problem-bank-of-canada-163757745.html

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