USD/CAD holds swing support as BOC maintains inflation target stance

USD/CAD continues to trade within a tight range near 1.3600, finding consistent support at key swing levels while traders await directional catalysts. The pair showed minimal reaction to Prime Minister Carey's decision to scale back retaliatory tariffs, which could facilitate future trade negotiations. Bank of Canada Governor Tiff Macklem reinforced the central bank's commitment to the 2% inflation target, confirming it won't be revised during the 2025 policy framework review. Technical analysis shows the pair maintaining support at the 1.3550-1.3580 swing area, with immediate resistance at 1.3650. A sustained break above resistance could target 1.3700 and the 1.3750 psychological level. The narrow trading range reflects market indecision ahead of upcoming economic data releases from both countries, with traders monitoring any shifts in monetary policy expectations that could provide the next directional impulse.