# USD/CAD: Risk appetite to be challenging for a while longer, weighing on the loonie – HSBC — Octa

> HSBC economists said risk appetite remains the dominant driver of the Canadian dollar, and that the outlook for growth and risk sentiment will stay challenging while the Fed and BoC keep tightening. They expect the CAD to remain under pressure.

- Date: 2022-10-31 · published 2022-10-31T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/39350-usd-cad-risk-appetite-to-be-challenging-for-a-while-longer-weighing-on-the
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Weak risk appetite and a firmer dollar tend to pressure commodity prices and commodity-linked currencies. This view points to continued headwinds for dollar-denominated commodity markets.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-01-31 | [US Tech Sell-Off Challenges Risk Appetites Ahead of the FOMC snbchf.com](https://feedsoft.ai/events/32396-us-tech-sell-off-challenges-risk-appetites-ahead-of-the-fomc-snbchf-com.md) | +0.3% | +0.4% |
| DXY | 2021-09-30 | [USD/CAD: Loonie Strengthens Despite Strong Greenback; Depreciation Risk Remains High \| FXEmpire](https://feedsoft.ai/events/45280-usd-cad-loonie-strengthens-despite-strong-greenback-depreciation-risk-remains.md) | +0.0% | -1.1% |
| DXY | 2019-07-31 | [The Loonie plunges following a "hawkish rate cut" by the U.S. Fed - OFX (CA)](https://feedsoft.ai/events/58339-the-loonie-plunges-following-a-hawkish-rate-cut-by-the-u-s-fed-ofx-ca.md) | +0.9% | +1.8% |
| DXY | 2024-03-27 | [USD to remain resilient, downside risks to the GBP in the months ahead – HSBC — Octa](https://feedsoft.ai/events/31466-usd-to-remain-resilient-downside-risks-to-the-gbp-in-the-months-ahead-hsbc-octa.md) | +0.2% | +1.4% |
| DXY | 2023-05-30 | [US dollar set to be stronger for longer - The Business Times](https://feedsoft.ai/events/36141-us-dollar-set-to-be-stronger-for-longer-the-business-times.md) | -0.5% | -1.4% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/1005074/

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