USD/CAD holds steady at 1.4375 ahead of Canadian retail data

USD/CAD trades flat around 1.4375 as markets await Canada's retail sales data, which could provide direction for the pair. The Canadian dollar has shown resilience despite broader US dollar weakness, supported by stable oil prices above $77 per barrel. Analysts expect Canadian retail sales to show a 0.3% monthly increase, potentially strengthening the loonie if data exceeds forecasts. The pair remains within a tight 1.4350-1.4400 range, with technical indicators suggesting consolidation. A break above 1.4400 could target the recent high at 1.4450, while support at 1.4350 has held firm through multiple tests. Bank of Canada rate expectations remain unchanged, with markets pricing in potential easing later this year. The retail sales release could trigger a breakout from the current range, particularly if the data significantly deviates from consensus expectations.