◂ Event Timeline

Nov 28, 2018MACROCanada

Loonie's dip below 75 cents proves short-lived

The Canadian dollar briefly fell below 75 US cents on Wednesday for the first time since June, touching 74.85 cents before rallying to close near 75 cents. The rebound followed Fed Chair Jerome Powell's comment that U.S. rates were just below neutral, which weakened the US dollar.

WHY IT MATTERS

A softer Fed tone weakens the dollar, which tends to support USD-priced commodities and improves export competitiveness for Canadian grain and oilseed sellers. The move is mainly a currency story with limited direct effect on feed grain prices.

AFFECTSCanadian Dollar (CAD per USD)▼US Dollar (Broad)▼

SOURCE
financialpost.comVictor FerreiraNov 28, 2018

Price reaction & history

Canadian Dollar (CAD per USD)▼bearish

Not enough comparable past events yet for a historical read.

US Dollar (Broad)▼bearishSO FAR1d -0.1%5d -0.8%20d -0.8%

After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.

Dec 29, 2017Who knew? The loonie is on track for its biggest yearly gain in eight years - Financial Post-1.1%
Feb 2, 2017No joy from the Fed: What you need to know before markets open - Financial Post-0.2%
Jun 1, 2021Dollar steadies, yuan slips after central bank moves to limit gains | Financial Post-0.2%
Nov 1, 2022Dollar droops amid improved risk mood before Fed; Aussie pares gain after RBA | Financial Post-1.0%
Sep 9, 2020Forget oil – this is the commodity that will lead the loonie’s next moves - The Globe and Mail-0.7%

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.

Canadian Dollar (CAD per USD) USDCAD · GP ▸

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US Dollar (Broad) DXY · GP ▸

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