The economy is possibly growing faster, which will put extra pressure on the Bank of Canada to raise interest rates. The labor market is getting very tight, which may put upward pressure on wages and inflation. This definitely encourages the bank to go further.
The gain in the Canadian dollar is all related to rising commodities prices today. Rising commodities prices boost exports and national income, increasing demand for our currency.
Economic growth is on track, which will spur a couple more interest-rate increases from the central bank. Higher interest rates support the Canadian dollar.
