The USD/CAD pair experienced a sharp decline, falling to near the 1.3900 mark during the European session on Wednesday. This drop follows a brief recovery of the US dollar on Tuesday, leading to a weakening of the Loonie. Market participants are exploring the driving factors behind this movement as they assess the impact of upcoming economic announcements and geopolitical developments. Staying informed about shifts in dollar strength and Canadian economic conditions will be essential for traders aiming to capitalize on these fluctuations in the currency pair.