Canadian Dollar Dives on CPI Surprise, Market Eyes Earlier BoC Rate Cut - Action Forex

Canadian Dollar falls sharply in early US session, triggered by an unexpected decline in Canada's headline CPI and a more significant than anticipated slowdown in core inflation measures. This trend of disinflation is likely to reassure BoC that its efforts to curb inflation are bearing fruit, possibly at a quicker pace than initially projected. The fresh data has fueled market speculation that BoC might advance its timeline for rate cuts to the second quarter of the year, rather than in the third quarter.