USD/CAD Rises to 1.4420 as BoC Cut Bets Increase on Weak CPI

USD/CAD advanced 0.4% to 1.4420 after Canadian inflation data missed expectations, with core CPI slowing to 1.8% from 2.0%. The softer inflation reinforces market expectations for a Bank of Canada rate cut at the January 29th meeting, with odds rising to 85% from 70% previously. Adding pressure, trade tensions escalated as Trump administration officials suggested Canada could face 10% baseline tariffs. The loonie weakened despite oil prices holding steady at $73.50. Technical analysis shows USD/CAD breaking above the 1.4400 resistance level, with next target at 1.4480. The 14-day RSI at 68 suggests approaching overbought conditions. Support lies at 1.4350, coinciding with the 50-day moving average. The combination of dovish BoC expectations and trade uncertainty points to continued CAD weakness against the greenback.