USD/CAD: BoC rate cut odds plummet after strong Canadian CPI data

The probability of a Bank of Canada rate cut has diminished significantly following the release of stronger-than-expected Canadian inflation data. The annual CPI came in at 2.4%, above the consensus forecast of 2.2%, while core CPI remained steady at 2.0%. This suggests that inflationary pressures are well-anchored, reducing the need for immediate policy easing. As a result, USD/CAD has fallen 0.3% to 1.3280, erasing earlier gains. Traders are now shifting their focus to next week's Canadian GDP report for further insights into the economy's health and its potential impact on the BoC's policy stance.