The Mexican peso and the Canadian dollar are surging on Monday morning after the US and Canada struck an agreement that strengthens the trading relationship of the three North American economic powerhouses.

Trade negotiators for the US and Canada put the finishing touches on a deal to reshape the 25-year-old North American Free Trade Agreement, known as NAFTA, on Sunday evening. It is the largest trade deal rewrite of President Donald Trump’s tenure.

The agreement came just hours before a deadline set by the Trump administration and will pave the way for a vote in Congress to approve the deal. It follows more than a year of negotiations between the US, Canada, and Mexico over the trilateral agreement.

Trump’s agreement with Canada concludes a lengthy negotiation period and adds to the previous agreement struck in August by the US and Mexico, ensuring continued strong ties between the three nations.

The president greeted the agreement as “wonderful” on Monday morning, saying it “is a great deal for all three countries.”

“Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduces Trade Barriers to the U.S. and will bring all three Great Nations together in competition with the rest of the world. The USMCA is a historic transaction!” — he said in two consecutive tweets.

“Congratulations to Mexico and Canada!” — he added in a third tweet.

As the smallest of the three economies, the benefits Mexico sees from its trading partnership with the US and Canada are outsized.

The peso has rocketed, gaining around 0.7% in trade against the dollar on Monday morning. By just after 10.00 a.m. BST (5.00 a.m. ET), the currency was trading at 18.54 to the dollar, as the chart below illustrates (this pairing shows the dollar’s fall against the peso, rather than the peso’s gains):

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“Investors have been waiting patiently for some good news regarding trade since the US escalated trade tensions earlier this year. There is clear elation that a deal has been struck,” Jasper Lawler, head of research at London Capital Group, said in an email.

The Canadian dollar has followed a similar pattern to the peso, gaining against the US dollar in overnight and European morning trading, although gains have been a little smaller:

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