I am recording with Cubase 8 artist on Windows 7 using a moxf8 as a midi keyboard. I use the FC7 controller for the volume and I get this behaviour:
I use the pedal, say, to lessen the volume. I play a new note and it sounds as the correct (lesser) volume. When I move the pedal just a little the volume jumps to the value set in the virtual instrument (I am usually using Kontakt).
When I use the pedal with moxf standalone (not with cubase) it works fine.
Obviously it has to do with some setting I am overlooking at Cubase, but which one?
Add a MIDI Monitor MIDI Insert, and check, what MIDI data does the pedal sends to Cubase. Here you can check, if it’s on the Pedal side, Cubase side or the Virtual Instrument side.