USD/CAD eyes decline on imminent US-Canada trade deal prospects

USD/CAD faces potential downward pressure as reports suggest a US-Canada trade agreement could materialize before the G7 summit next week. Pete Hoekstra, Trump's new envoy to Canada, delivered an optimistic speech at Toronto's Empire Club, expressing confidence in the bilateral relationship's trajectory. The Toronto Sun reports that speculation is mounting about an imminent deal, which could strengthen the Canadian dollar against its US counterpart. Market participants are closely monitoring developments, as any trade agreement would likely reduce uncertainty and boost CAD through improved trade flows and investor confidence. Technical traders should watch the 1.3600 psychological level as immediate support, with a break below potentially accelerating CAD gains toward 1.3550. The timing before the G7 summit adds significance, as it could set a positive tone for broader international cooperation. Traders should prepare for increased volatility in USD/CAD as negotiations progress.