USD/CAD: BoC Hold at 2.25% Keeps Pair in Neutral Territory

USD/CAD remains range-bound as the Bank of Canada holds its policy rate steady at 2.25%, with no clear breakout signal on the charts. Soft domestic growth limits upside for the CAD, while generalized inflation risks prevent further BoC easing, keeping price action compressed between key support near 1.3800 and resistance around 1.4000. Trade surplus data with broad export gains adds modest CAD support. Traders should watch the 1.3800 support level closely — a break lower could signal CAD strength, while a push above 1.4000 favors USD bulls. The overall directional bias remains neutral, with the pair likely to consolidate until clearer macro or inflation data shifts the BoC's prolonged hold stance.