USD/CAD is testing the weekly low in volatile trading

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USD/CAD is testing the weekly low in volatile trading

<p>The Bank of Canada decision next Wednesday kicks off a blockbuster 10-day stretch of central bank decisions that will set the table for the remainder of the year.</p><p>Ahead of that, the Canadian dollar is trying to recover and the US dollar is broadly retreating. That comes after the Fed's Daly reiterated that 4.50-5.00% is still the planned peak for the FOMC in a pushback against bond markets beginning to price above 5%.</p><p>That's sent USD/CAD nearly 200 pips from the intraday high in a few hours. In addition, the loonie is getting help from oil prices which reversed higher. A drag though is natural gas, which is down 7% today on warm weather forecasts.</p><p>The support extends to 1.3651, which is just 3 pips from the sesion low. We're already trying to form a triple bottom, which is just a double bottom that didn't work. </p><p>Whether the loonie can reassert itself will depend on what the Bank of Canada does next week. The most-recent talk has been hawkish but they could signal a slowing pace of hikes ahead. If so, the loonie could sell off.</p><p>Alternatively, the most-recent CPI report was hot and today's retail sales were upbeat. That could lead to more hawkish signals and a broad loonie bid.</p>

                This article was written by Adam Button at forexlive.com.

Source: USD/CAD is testing the weekly low in volatile trading

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