USD/CAD slips to 1.3450 ahead of Canada inflation data release

USD/CAD is trading lower by 0.3% at 1.3450 as markets await the release of Canada's April CPI report. Analysts forecast headline inflation to ease to 4.1% YoY from 4.3% in March, while core inflation is expected to hold steady at 4.4%. A lower-than-expected CPI print could bolster expectations for the Bank of Canada to maintain rates at 4.5%, potentially weighing on the loonie. Immediate support is seen at 1.3420 (50-day moving average), with a break below exposing the 1.3350 level. Conversely, a hot inflation reading might fuel hawkish BOC bets, propelling USD/CAD towards resistance at 1.3500.