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Higher oil prices supported the Canadian dollar a few trading sessions ago.

Will Powell’s speech scheduled today bring the focus (and demand) back to the U.S. dollar?

Before moving on, ICYMI, today’s Asia-London session watchlist checked out AUD/JPY for signs of continuation of bullish momentum after an upside breakout. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

BIS: Central bank digital currencies can slash cross border payment time

BOJ policymakers warned of Japan’s recovery delay, China risk

Lockdowns hammer at Australian retail sales in August

Bloomberg: Hong Kong asks banks to report exposure to Evergrande

Firmer dollar and soaring U.S. Treasury yields dents gold prices

Asian markets grapple with Evergrande fallout, eye China power crunch

Germany’s consumer confidence rebounds from -1.3 to 0.3 in October

European stocks fell as a surge in government bond yields pressured high-growth technology shares

China energy crunch triggers alarm, pleas for more coal

Upcoming Potential Catalysts on the Economic Calendar:

ECB President Lagarde to make a speech at 12:00 pm GMT
U.S. Goods trade balance at 12:30 pm GMT
U.S. House price index at 1:00 pm GMT
U.S. CB consumer confidence at 2:00 pm GMT
U.S. FOMC Chairman Powell to give a speech at 2:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: USD/CAD

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

In case you missed it, crude oil had a GOOD couple of trading sessions as it hit $80/barrel on undersupply issues.

The headlines increased the demand for crude-related CAD and dragged USD/CAD back down to the 1.2600 support.

Can the Loonie bulls sustain the bullish pressure? Already we’re seeing a falling wedge situation on the 1-hour time frame.

There are no top-tier economic reports scheduled in the U.S. session but FOMC head honcho Powell will give a speech in an ECB forum later today.

If Powell’s speech reminds traders that his gang is planning on tapering as early as November, then we could see dollar demand that could boost USD/CAD back to the 1.2700 zone.

If today’s market themes emphasize crude oil’s supply issues, however, or if Powell reiterates that tightening won’t necessarily follow tapering, then USD/CAD can extend its short-term downswing and maybe drag USD/CAD to its 1.2500 support.