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Threat

Loonie rallies toward 1.38 as oil climbs and Fed rate-hike odds fade

August 21, 2026·Export Alberta·1 min read·MKTGSpace

THREAT · Export Alberta · Currency

USD/CAD fell for a second straight day to around 1.3800, with the Canadian dollar supported by rising crude prices and a softening U.S. dollar, per FXStreet. Markets now price only a roughly 33% chance of a Fed rate hike at the next meeting, down from 47% a month ago, while elevated Middle East risk keeps a premium in oil — a combination that favours continued loonie strength.

What it means: Every cent the loonie gains shaves margin off U.S.-dollar receivables. If you invoice in USD, this is the week to revisit hedging coverage and U.S. pricing — especially if your products also face new tariff exposure, where the two effects stack.

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