USDCAD began April with significant volatility. The currency pair dropped to the 1.40 level due to a widespread weakness in the US Dollar. This decline stemmed from the tariffs imposed by former President Donald Trump on Liberation Day. Danske Bank’s FX analyst, Frederik Romedahl, provided insights into these developments. As fears of a potential recession grow, traders remain cautious, affecting the Canadian Dollar’s performance against the US Dollar. Interest in safe-haven assets rises as investors react to ongoing economic uncertainty. The currency markets are expected to keep responding dynamically to these unfolding events, making it crucial for traders to stay updated on economic indicators and developments in US trade policy.