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The Canadian dollar rose to a near eight-month high against the US dollar on August 31 and posted its largest monthly gain since June 2019, up 2.9% for August. Gains were attributed to signs of domestic economic recovery and improved risk appetite, with broad US dollar weakness after the Fed's policy shift on inflation.
A stronger loonie raises the cost of Canadian-origin feed inputs such as canola meal and barley in US dollar terms and can weigh on Canadian export competitiveness. The move mainly reflects dollar weakness, which tends to support dollar-denominated commodity prices.
theglobeandmail.comFergal SmithAug 31, 2020Not enough comparable past events yet for a historical read.
After 1,637 past bearish macro events, DXY moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
