The other trade deal that could happen this week

USD/CAD perked up to 1.3728 in Asian trade but has since retreated back to 1.3689, slightly lower on the day.

I spoke with Reuters yesterday about what I see are increasing signs of a US-Canada trade deal; something that could lead to more-sustained selling in USD/CAD and broader Canadian dollar gains.

“I see an
abundance of signs that the U.S. and Canada are on the verge of making a
trade deal,” said Adam Button, chief currency analyst at ForexLive.

“The news today is that Canada is going to meet its NATO target and I
don’t think it’s a coincidence that that is one of the things that the
U.S. is asking for.”

Prime Minister Mark Carney yesterday said Canada would immediately meet its 2%-of-GDP NATO spending target. In addition, Canada has refrained from counter-tariffs on steel/aluminum and Alberta dropped a liquor boycott.The US ambassador to Canada confirmed that ‘secret’ talks are ongoing and various reports say a deal could come before the June 15 G7 meetings in Canada.

This article was written by Adam Button at www.forexlive.com.