USD/CAD Steady at 1.3920 as BoC Rate Cut Expectations Mount

USD/CAD consolidated above 1.3900, trading at 1.3920 with minimal 0.1% movement, as markets priced in aggressive Bank of Canada easing expectations. Mixed Canadian economic data showed retail sales rising 0.4% month-over-month but employment figures disappointing at -15,000 jobs versus +20,000 expected. The Canadian dollar's weakness is offset by similar US dollar softness, keeping the pair range-bound between 1.3880-1.3950. Markets are pricing in a 75% probability of a 50-basis-point BoC cut at the next meeting, compared to only 25 basis points expected from the Federal Reserve. Oil prices at $68.50 per barrel provide limited support for the commodity-linked CAD. Technical indicators suggest consolidation continues, with a break above 1.3950 targeting 1.4000, while support at 1.3880 remains intact. Traders should monitor upcoming Canadian GDP data and any shifts in BoC communication for directional catalysts in this technically balanced pair.