WTI crude oil roses as high as $90.65 today but with an Iran nuclear deal now looking more likely, it crumbeld to $86.17. That's the lowest since January.

Yet the loonie is higher today and much stronger than its commodity cousins in Australia and New Zealand. To be fair, some of that is catch-up from CAD underperformance but it's unusual to see the loonie at the top of the FX leaderboard on a day with oil down nearly 4%.

Part of the answer lies in natural gas. Henry Hub is up 7% today in part due to a German denial about shutting down nuclear. But gas has rediscovered some momentum and at $9.32 this would be a new high close for the cycle.

Natural gas daily
Natural gas daily

Combine that with the strong mood for risk assets and the loonie has shrugged off the oil drop.

USD/CAD is down 73 pips on the day to 1.2832. That's in the middle of the recent range but at the 61.8% retracement of Monday's gain.

USDCAD analysis

I don't think CAD can disconnect from oil for long so the dynamic will be worth watching closely. But there's a growing sentiment that Canada is well-positioned for the next economic cycle. Power is plentiful in the country and its natural gas supplies are bountiful. If there's a boom in mining, it also stands to benefit.