# Canadian bonds, loonie brace for U.S. Federal Reserve rate hike - The Globe and Mail

> Markets priced a near-certain Fed rate hike for March 15 after February payrolls rose 235,000 and unemployment fell to 4.7 per cent. Investors expect Canadian bonds and the loonie to suffer as US rates rise.

- Date: 2017-03-12 · published 2017-03-12T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/72217-canadian-bonds-loonie-brace-for-u-s-federal-reserve-rate-hike-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 stronger US dollar from higher US rates tends to pressure dollar-priced commodities, including grains and meals, and weakens the Canadian dollar.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-02-15 | [Canadian dollar weakens as U.S. data boosts Fed rate hike prospects - The Globe and Mail](https://feedsoft.ai/events/37578-canadian-dollar-weakens-as-u-s-data-boosts-fed-rate-hike-prospects-the-globe.md) | +0.8% | +1.8% |
| DXY | 2018-11-08 | [Canadian dollar hits eight-week low as U.S. Fed affirms rate hike policy - The Globe and Mail](https://feedsoft.ai/events/62276-canadian-dollar-hits-eight-week-low-as-u-s-fed-affirms-rate-hike-policy-the.md) | +1.0% | +1.2% |
| 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 | 2024-01-31 | [Canadian dollar weakens as Fed rate signal offsets GDP gain - The Globe and Mail](https://feedsoft.ai/events/32333-canadian-dollar-weakens-as-fed-rate-signal-offsets-gdp-gain-the-globe-and-mail.md) | +0.3% | +0.4% |
| 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% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/globe-investor/inside-the-market/canadian-dollar-and-bonds-brace-for-us-federal-reserve-rate-hike/article34277007/

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