Increasing oil prices have been supporting the Canadian currency, and the spike in crude following the US decision to pull out of the Iran nuclear deal helped the loonie further. The CAD was one of the few currencies that strengthened versus the USD last night, gaining as much as 0.8% to close around 1.2850, its biggest one-day gain in a month.
Also helping the CAD, Canadian government yields have been increasing, with the 2-year at an eight-year high. Also helping the CAD last night, building permits came much stronger than anticipated (3.1% vs 2.0% expected).
Going forward, traders will be watching the Housing Price Index release tonight and the Unemployment data this Friday.