USD/CAD Consolidates Below 1.4250 Ahead of US PCE Data

The USD/CAD pair entered a bullish consolidation phase during Thursday's Asian session, hovering around the 1.4230–1.4225 region. Price action remains just below the April 2025 highs touched in the previous session, with the 1.4250 level acting as near-term resistance.

Market participants are now focused on the upcoming US Personal Consumption Expenditures (PCE) report, which could provide fresh impetus for the pair. Until the data release, USD/CAD is expected to hold within its current narrow range, with support seen near the 1.4200 handle.

The pair's ability to sustain above 1.4200 suggests underlying bullish momentum, but a break above 1.4250 is needed to confirm further upside. Conversely, a softer US inflation reading could weigh on the dollar and trigger a pullback.