The Canadian Dollar (CAD) soared 1.1% against the US Dollar (USD) on Thursday, sending USD/CAD to 17-week lows near the 1.4000 handle for the first time since last December. The Loonie has been bolstered by a rapidly weakening Greenback, which is tumbling on the heels of the Trump administration’s “Liberation Day” tariff unveiling.

It started with a bang but ended with a whimper; well, for USD/CAD bulls, at least. The pair began its ascent in Q4 as the US Dollar rolled to fresh multi-year highs, and given the threat of tariffs on Canada and possible business disruptions,

The Canadian dollar rose to a near four-month high against its U.S. counterpart on Thursday as Canada avoided fresh tariffs on its goods in a widening trade war that has led to investors ditching the American currency.