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• The Canadian Dollar whipsawed on Wednesday, finding fresh gains on US Dollar woes.
• Canadian economic data remains limited after this week’s inflation update.
• Trump is signaling his intent to terminate Powell as the Fed chair, but he needs Congress’ help to do it.

The Canadian Dollar (CAD) whipsawed on Wednesday, tossed around tumultuous sentiment seas as the US Dollar (USD) grapples with ongoing political volatility from the Trump administration. Cooler-than-expected United States (US) Producer Price Index (PPI) inflation data sparked some positive investor risk appetite, but the mood quickly soured as President Donald Trump steps up his attacks on Federal Reserve (Fed) Chair Jerome Powell.

Daily digest market movers: Canadian Dollar catches fresh bids from Greenback weakness
 

• The Canadian Dollar caught a slight lfit against the Greenback following a volatile start.
• 1.3700 still remains a key technical barrier on the USD/CAD chart.
• US PPI inflation eased more than expected in June, falling to 2.6% from 3.0%.
• US President Donald Trump continues his campaign against Fed Chair Powell, and is looking to recruit Congressional Republicans to allow him to circumvent clear legal barriers.
• With the Fed’s political autonomy now in question, volatility is sharply on the rise and risk aversion is beginning to cook.

Canadian Dollar price forecast
 

The Canadian Dollar shrugged off early losses on Wednesday, pushing the USD/CAD pair back down into the 1.3700 handle. The pair continues to struggle with decisive moves in either direction, and a technical downside rejection from the 50-day Exponential Moving Average (EMA) near 1.3750 is forming on the daily candlesticks.

USD/CAD daily chart
 

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