Sometimes the Canadian dollar benefits from its association with the US dollar, sometimes it doesn't. This week the latter was the case after Federal Reserve officials kept alive the possibility of higher US interest rates this year. They were far from definite about the prospect, even so there is more chance of a US rate hike than one from the Bank of Canada. It did not help the Loonie's case when it was reported that the Canadian economy shrank by -0.4% in the second quarter of 2016.

Across the Pond sterling was pushing ahead as better-than-expected UK economic data encouraged speculators to close out more of their short positions. On three successive days it was the top performer among the major currencies and it claimed that title for the week as a whole too. Overall the Loonie was down by three and a half cents against the pound and it lost just over one US cent.