Last Friday's Canadian consumer price index data were positive for the Loonie. The headline rate of inflation was lower on the month but above forecast at 1.7% and the Bank of Canada's "core" measure was steady at 1.2%. During the rest of the week the ecostats had minimal impact: most of the pressure on the currency came from south of the border and it was negative. First, the new Federal Reserve chairman encouraged investors to look for up to four interest rate increases this year. Second, Donald Trump fired the opening shots in what could develop into a trade war when he imposed tariffs on imported steel and aluminium. The Canadian dollar lost two thirds of a US cent and added half a cent against sterling.
The pound was held back by talk of Brexit. The EC president, the leader of the opposition and two former prime ministers were critical of the government's approach, which the current PM will defend in a speech this Friday.