# Why the loonie took a sudden dive Wednesday - The Globe and Mail

> The Canadian dollar fell about half a cent below 81 US cents after the Fed's September policy statement signalled more rate hikes than markets expected. The US dollar index spiked 0.8 per cent, and the Fed raised its 2017 growth forecast to 2.4 per cent.

- Date: 2017-09-20 · published 2017-09-20T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/69197-why-the-loonie-took-a-sudden-dive-wednesday-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

A sharp dollar rally after a hawkish Fed tends to pressure dollar-denominated commodity prices and shifts relative competitiveness of US feed exports versus Canadian and Brazilian supply.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 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 | 2017-09-27 | [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 | 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% |
| 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% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/globe-investor/inside-the-market/why-the-loonie-has-taken-a-sudden-dive/article36327687/

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