USD/CAD Bullish at 1.4050 as Oil Drops and BoC Cut Bets Rise

USD/CAD maintains a bullish trajectory around 1.4050, gaining 0.4% as declining oil prices weigh on the commodity-linked Canadian dollar. WTI crude fell 2.1% to $68.50 per barrel, undermining CAD strength given Canada's significant energy exports. Market participants have increased Bank of Canada rate cut expectations to 75% probability for the December meeting, following softer domestic economic data. The pair shows strong technical momentum with immediate resistance at 1.4100 and solid support established at 1.4000. Today's Canadian CPI data release could trigger significant volatility, with consensus expecting a decline to 2.1% YoY from 2.3% previously. A weaker-than-expected inflation print would likely accelerate USD/CAD gains toward 1.4150, while any upside surprise might prompt profit-taking. Traders should monitor oil price movements closely as correlation remains strong.