USD/CAD treads water below 1.3800, awaiting US inflation figures

USD/CAD is currently treading water below the 1.3800 line while awaiting US inflation figures. Earlier this week, the US dollar bounced back from three-month lows around 1.3730 but failed to sustain above this significant resistance. This level remains a crucial psychological point for traders. The market is likely to be heavily influenced by upcoming economic data, especially the inflation results, as they will directly impact US central bank monetary policy. If inflation exceeds expectations, it could signal bullish momentum for the USD and lead to attempts to break through the 1.3800 barrier. Conversely, weaker-than-expected results may prompt a decline back toward 1.3730. The market is in a volatile state, with the next move being closely watched.