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It’s a big U.S. session trading for both the Loonie and the dollar today, so I figured we should set our sights on USD/CAD’s short-term uptrend.

Think the Loonie can gain more pips on the dollar in the next couple of hours?

Before moving on, ICYMI, today’s Asia-London session watchlist looked for an upside breakout on NZD/USD ahead of the RBNZ’s policy announcement. Be sure to check that out if it’s still a valid play!

And don’t forget to check our newly released real-time Currency Strength Meter and Currency Volatility Meter!

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Eurozone industrial production at 9:00 am GMT
  • Canada’s manufacturing sales at 12:30 pm GMT
  • U.S. PPI reports at 12:30 pm GMT
  • BOC’s monetary policy statement at 2:00 pm GMT
  • BOC’s presser at 3:00 pm GMT
  • Fed’s Powell to give testimony in DC

What to Watch: USD/CAD

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

Earlier this week, we checked out USD/CAD’s Head and Shoulder-ish pattern ahead of Canada’s CPI release.

But the bulls ain’t going nowhere! USD/CAD has climbed by at least 50 pips since then, and it looks like it’s ready for more gains.

Today is a big day for both USD and CAD as U.S. and Canadian central bankers take center stage.

The Bank of Canada (BOC) isn’t expected to make policy changes in its announcement today but, after the Reserve Bank of New Zealand (RBNZ)’s surprise earlier, traders will likely brace for interesting plot twists. Maybe some changes to asset buying without making interest rate changes?

Meanwhile, Jerome Powell will make his semi-annual testimony in D.C. Word around is that the Fed head honcho can restart the dollar’s intraweek upswing if he hints of tapering asset purchases later this year.

If Powell hints at taking action on the not-so-temporary high inflation in the U.S., then we could see USD/CAD soar to its July highs if not new monthly highs.

But if the BOC ups its hawkishness or makes hawkish policy changes, or if Powell’s testimony is a non-mover, then USD/CAD could break below its key trend line support and retest the 200 SMA on the 1-hour time frame.