USD/CAD Consolidates Ahead of Dual CPI Releases from US and Canada

USD/CAD is trading in a tight range as markets await inflation data from both the United States and Canada, creating a unique dual-catalyst scenario for the pair. Current price action shows consolidation near recent levels with reduced volatility as traders avoid taking significant positions before the data releases. Both CPI reports will directly impact respective central bank policy expectations, with the Bank of Canada and Federal Reserve closely monitoring inflation trends. Technical indicators suggest the pair is coiling for a potential breakout, with support holding at recent lows and resistance capping gains at psychological levels. The simultaneous release of inflation data from both countries could create heightened volatility and establish new directional trends. Market positioning appears balanced, reflecting uncertainty about relative inflation dynamics between the two economies. Traders should prepare for potential whipsaw movements as the market digests both data points.