ICYMI: There is a draft, high-level proposal on a new trade deal between Canada and the US

The smoke around a new Canada-US trade deal continues to rise.

This was out earlier today but in case you missed it, the Toronto Sun reporter who initially reported a potential deal at the start of the week now has more details, citing 'multiple sources'. He continues to suggest that the hope is to get a deal before the G7 meeting on June 15 in Canada.

What we can expect is an announcement that Canada will increase its defence spending, including potential participation in the Golden Dome missile defence system. We should expect the government to show that border security will be a priority and there will be action on fentanyl.

It's not a full USMCA extension, which is likely to be tackled later. So while it will add some certainty, more-contentious negotiations are likely starting next summer when the window for renegotiation reopens.

After this was published, the US ambassador to Canada confirmed that 'secret' talks were ongoing.

USD/CAD today traded to the lowest since October at 1.3635 but bounced to 1.3660 as the US dollar chops around more broadly.