# Why today’s Fed action could pummel the loonie - The Globe and Mail

> The Federal Reserve was expected to raise interest rates on Wednesday, September 26. Analysts warned that higher US bond yields could push the Canadian dollar lower, especially as transport constraints keep some Canadian crude from reaching US markets.

- Date: 2018-09-25 · published 2018-09-25T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/63273-why-today-s-fed-action-could-pummel-the-loonie-the-globe-and-mail
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Fed tightening strengthens the US dollar and can pressure commodity prices and emerging-market currencies, while Canadian crude export constraints add a separate drag on the loonie.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-09-27 | [How the Fed is clipping the loonie’s wings - The Globe and Mail](https://feedsoft.ai/events/69196-how-the-fed-is-clipping-the-loonie-s-wings-the-globe-and-mail.md) | +0.5% | +1.5% |
| DXY | 2017-09-20 | [Why the loonie took a sudden dive Wednesday - The Globe and Mail](https://feedsoft.ai/events/69197-why-the-loonie-took-a-sudden-dive-wednesday-the-globe-and-mail.md) | +1.1% | +1.9% |
| DXY | 2021-07-15 | [The loonie is sinking fast – and the Fed is to blame - The Globe and Mail](https://feedsoft.ai/events/46277-the-loonie-is-sinking-fast-and-the-fed-is-to-blame-the-globe-and-mail.md) | +0.5% | +0.4% |
| 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 | 2018-02-13 | [The pain trade: Why the Canadian dollar is aching - The Globe and Mail](https://feedsoft.ai/events/66726-the-pain-trade-why-the-canadian-dollar-is-aching-the-globe-and-mail.md) | -0.4% | -0.2% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-wednesdays-fed-meeting-will-be-vital-for-the-loonie/

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