- The U.S. dollar touched session lows against the Canadian dollar on Monday after data showed that Canadian building permits rose at the fastest rate on 10 months in May.

USD/CAD was down 0.15% to 1.0636, not far from last Thursday’s six-month low of 1.0619.

The pair is likely to find support at 1.0619 and resistance at 1.0680.

The Canadian dollar moved higher after official data showed that the value of building permits issued in May increased 13.8% to C$6.95 billion, well above expectations for a 3.1% increase.

The value of building permits issued in April was revised up to 2.2% from the previous estimate of a 1.1% gain.

The Canadian dollar rose to six month highs in recent sessions after stronger than expected domestic inflation data for May fuelled expectations that the Bank of Canada could shift away from its neutral stance on interest rates.

Last week’s stronger than forecast U.S. jobs report for June also boosted the outlook for the north-American economy.

Official data on Thursday showed that the U.S. economy added a larger-than-forecast 288,000 jobs last month, while the unemployment rate ticked down to 6.1%, the lowest in almost six years.

The strong data sparked speculation that the Federal Reserve could bring forward its timetable for raising interest rates.

The Canadian employment report for June is to be released on Friday.

Elsewhere Monday, the loonie was close to six-month highs against the euro, with EUR/CAD slipping 0.15% to 1.4459.

The euro remained under pressure after European Central Bank Vice President Benoit Coeure said Sunday that rates will remain on hold for an extended period to ensure monetary stability in the euro zone.

Data on Monday showing that German industrial output unexpectedly dropped in May also weighed on the single currency.

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