# Canadian dollar falls by most in three weeks as oil stumbles | Financial Post

> The Canadian dollar fell 0.5% to 1.2375 per U.S. dollar on Thursday as oil prices dropped about 1% after a forecast for a warm U.S. winter. Canada's annual inflation rate reached an 18-year high in September, and Ottawa said it would end broad COVID-19 support programs. Scotiabank expects the Bank of Canada to hike rates by 100 basis points in the second half of 2022.

- Date: 2021-10-21 · published 2021-10-21T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/44823-canadian-dollar-falls-by-most-in-three-weeks-as-oil-stumbles-financial-post
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

The loonie's close link to crude means a weaker oil price pushes USD/CAD higher. A warmer U.S. winter outlook reduces natural gas and energy demand expectations, which can ease energy-driven inflation pressure.

## Read by commodity

- WTI: bearish ▼
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-07-27 | [Canadian dollar falls as China stock sell-off spooks investors \| Financial Post](https://feedsoft.ai/events/46272-canadian-dollar-falls-as-china-stock-sell-off-spooks-investors-financial-post.md) | -1.1% | -8.9% |
| WTI | 2022-11-18 | [Canadian dollar extends weekly decline as oil prices slide \| Financial Post](https://feedsoft.ai/events/38908-canadian-dollar-extends-weekly-decline-as-oil-prices-slide-financial-post.md) | -6.5% | -9.1% |
| WTI | 2020-06-11 | [Canadian dollar slides as investor risk appetite wanes \| Financial Post](https://feedsoft.ai/events/52864-canadian-dollar-slides-as-investor-risk-appetite-wanes-financial-post.md) | -4.1% | +0.2% |
| WTI | 2021-04-21 | [Canadian dollar sees biggest drop in nearly 2 months as oil falls](https://feedsoft.ai/events/47853-canadian-dollar-sees-biggest-drop-in-nearly-2-months-as-oil-falls.md) | +0.7% | +4.7% |
| WTI | 2023-05-30 | [Canadian dollar dips as oil prices fall more than 4%](https://feedsoft.ai/events/36186-canadian-dollar-dips-as-oil-prices-fall-more-than-4.md) | -0.4% | -6.6% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/canadian-dollar-falls-by-most-in-three-weeks-as-oil-stumbles

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