Canadian CPI in September came out 1.6% y/y, down from 1.8% in August. The explanation is lower energy prices but there are some other sectors that are trending lower.
The Canadian money market went ape shit over this, a 50 bp cut is priced in for October 23rd, and over 75 bp is priced in by December.
Contrast this with the Fed which is expected to cut by 25 bp on Nov 11 and another 25 bp on December 18th.
A few weeks ago, those numbers were 50 bp cuts for the FED.
Not a surprise then, that the Canadian dollar has done a 180 since late September.