USD/CAD drops to 1.3650 as Trump's Fed pick signals dovish shift

USD/CAD has declined 0.6% to 1.3650 following reports that President Trump's nominee for Federal Reserve Governor has indicated support for a more accommodative monetary policy stance. The nominee's dovish comments during preliminary discussions suggest potential for faster rate cuts than currently priced by markets, weighing heavily on the dollar. Canadian dollar strength is further supported by stable oil prices around $78 per barrel and expectations of steady Bank of Canada policy. Technical indicators show USD/CAD breaking below the 1.3700 support level, with the 200-day moving average at 1.3620 now in focus. The pair's momentum indicators have turned bearish, with RSI dropping below 40. Traders are positioning for potential further downside toward 1.3600 if Friday's Canadian employment data exceeds expectations, though any hawkish Fed surprises could trigger a relief rally.