USD/CAD drops 0.8% on Canada-US trade deal progress reports

USD/CAD plummeted 110 pips to 1.3580 as reports emerged of a draft high-level trade proposal between Canada and the United States. Multiple sources confirmed to the Toronto Sun that negotiations have advanced significantly, with a potential framework agreement addressing key bilateral trade issues. The Canadian dollar strengthened across the board, with CAD gaining 0.8% against the USD as traders priced in reduced trade uncertainty and potential economic benefits for Canada. The loonie's rally was further supported by stable oil prices near $78 per barrel. Technical analysis shows USD/CAD breaking below the critical 1.3600 support level, opening the path toward 1.3550 and potentially 1.3500 if trade optimism persists. Immediate resistance now sits at the former support of 1.3600. Traders should closely monitor official statements from both governments for confirmation of the trade deal progress.