USD/CAD falls as Canada-US trade deal talks resume

USD/CAD dropped 0.4% to 1.3580 as the Canadian dollar strengthened on renewed optimism for bilateral trade negotiations. Canada's Trade Minister announced plans to visit Washington within the next two weeks, signaling progress in resolving ongoing trade disputes between the two nations. The loonie gained support as markets interpreted this development as potentially reducing trade-related uncertainties that have weighed on the currency. The move also coincided with WTI crude oil holding above $71 per barrel, providing additional support for the commodity-linked Canadian dollar. Technical indicators show USD/CAD breaking below the 1.3600 psychological level, with immediate support at 1.3550 (50-day moving average). Resistance now stands at 1.3620. Traders are monitoring developments closely, as successful trade negotiations could further boost CAD strength and potentially push USD/CAD toward the 1.3500 handle in the near term.