# The Loonie plunges following a "hawkish rate cut" by the U.S. Fed - OFX (CA)

> The Canadian dollar fell after the Federal Reserve cut rates by a quarter point on July 31, 2019, the first cut in a decade. Chairman Powell signaled that the cut was a modest adjustment and did not necessarily begin a longer easing cycle, pushing the US dollar to a 27-month high.

- Date: 2019-07-31 · published 2019-07-31T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/58339-the-loonie-plunges-following-a-hawkish-rate-cut-by-the-u-s-fed-ofx-ca
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A stronger US dollar lowers US-dollar commodity prices in other currencies and reduces export demand for US feed grains and oilseeds. It also tends to weigh on the price of commodities more broadly.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-12-19 | [Fed's hawkish cut fires up rate hike debate](https://feedsoft.ai/events/27137-fed-s-hawkish-cut-fires-up-rate-hike-debate.md) | +0.5% | +1.4% |
| DXY | 2026-06-18 | [US dollar rally builds as hawkish Fed meeting stokes rate-hike bets \| The Straits Times](https://feedsoft.ai/events/11517-us-dollar-rally-builds-as-hawkish-fed-meeting-stokes-rate-hike-bets-the-straits.md) | +1.4% | +1.0% |
| DXY | 2017-03-12 | [Canadian bonds, loonie brace for U.S. Federal Reserve rate hike - The Globe and Mail](https://feedsoft.ai/events/72217-canadian-bonds-loonie-brace-for-u-s-federal-reserve-rate-hike-the-globe-and-mail.md) | -1.1% | -1.3% |
| DXY | 2022-09-22 | [Loonie slides after Fed rate hike as investors retreat to safe haven of U.S. dollar \| Advisor.ca](https://feedsoft.ai/events/39818-loonie-slides-after-fed-rate-hike-as-investors-retreat-to-safe-haven-of-u-s.md) | +1.9% | +1.8% |
| DXY | 2018-09-26 | [Gold prices fall following Fed rate hike](https://feedsoft.ai/events/62952-gold-prices-fall-following-fed-rate-hike.md) | +0.2% | +1.5% |

## Sources

- ofx.com: https://www.ofx.com/en-ca/forex-news/daily-and-weekly-market-news/2019/08/01/the-loonie-plunges-following-a-hawkish-rate-cut-by-the-us-fed/

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