The USD CAD has entered a troubling phase as markets react to the latest U.S. inflation data. The inflation report fell significantly below expectations. This surprising development has led the market to anticipate further interest rate cuts from the Federal Reserve. Consequently, the USD CAD currency pair has plummeted, breaking through long-established support levels. Traders are now on alert for additional downside movement unless a sharp rebound is triggered by oversold market conditions. Investors must navigate this volatile scenario carefully as the Federal Reserve’s decisions loom large.