USD/CAD trades within a narrow range below the 1.3700 mark. As European trading hours unfold, investors maintain a cautious approach ahead of the US Consumer Price Index report. Anticipation for the May CPI release is shaping market sentiment, with participants drawn to the potential implications for future Federal Reserve policy. A focus on inflation trends could lead to increased volatility in the USD/CAD pair. Traders should prepare for significant movements upon the report’s publication at 12:30 GMT.