USD/CAD holds steady as Fed path and BoC divergence loom

  • USD/CAD is poised at a critical juncture following the release of April's US Consumer Price Index (CPI), which delivered a mild downside surprise across key inflation components. With several high-profile Federal Reserve (Fed) speeches still ahead this week, the pair's near-term trajectory may be shaped by evolving rate expectations and diverging policy signals between the Fed and the Bank of Canada (BoC).