# Loonie Surges as Traders Bet on Earlier Interest-Rate Hike

> The loonie rose about 1.1% to C$1.2483 per US dollar after Canada's economy grew faster than forecast in the second quarter. Overnight index swaps showed the probability of a Bank of Canada rate hike this year rising to 79%, with a September hike seen at 40%.

- Date: 2017-09-01 · published 2017-09-01T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/69708-loonie-surges-as-traders-bet-on-earlier-interest-rate-hike
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A firmer Canadian dollar makes Canadian grain, oilseed and meal exports less competitive, and higher Canadian rates raise financing costs for feed buyers and farmers, which can soften canola and feed-grain demand.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2017-08-31/canadian-dollar-surges-as-gdp-brings-earlier-rate-hike-into-view

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