# How the Fed is clipping the loonie’s wings - The Globe and Mail

> Federal Reserve Chair Janet Yellen said the Fed should be wary of moving too gradually in raising rates, pushing US bond yields higher and the Canadian dollar lower. The Canadian-US two-year yield spread, which peaked on Sept. 8, has narrowed since then, weighing on the loonie.

- Date: 2017-09-27 · published 2017-09-27T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/69196-how-the-fed-is-clipping-the-loonie-s-wings-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

Higher US yields and a firmer dollar tend to weaken commodity prices priced in dollars and make US grain and meal relatively cheaper for foreign buyers, a mild bearish factor for feed prices.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2018-09-25 | [Why today’s Fed action could pummel the loonie - The Globe and Mail](https://feedsoft.ai/events/63273-why-today-s-fed-action-could-pummel-the-loonie-the-globe-and-mail.md) | +0.3% | +1.4% |
| 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 | 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/globe-investor/inside-the-market/how-the-fed-is-clipping-the-loonies-wings/article36410468/

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