# Want to know where the loonie’s headed? Ask the Fed  - The Globe and Mail

> Market strategist Scott Barlow argues the Canadian dollar is now driven mainly by bond yields and central bank policy rather than energy prices. He says the two-year Canada-U.S. yield spread used to explain the loonie has weakened in recent years. He advises watching Federal Reserve Chair Jerome Powell for the dollar's next move.

- Date: 2019-08-26 · published 2019-08-26T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/57827-want-to-know-where-the-loonie-s-headed-ask-the-fed-the-globe-and-mail
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Canadian dollar direction is tied to Fed policy rather than oil, so feed buyers pricing Canadian-origin goods should track U.S. rate expectations rather than crude prices.

## Read by commodity

- USDCAD: neutral

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-want-to-know-where-the-loonies-headed-ask-the-fed/

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