On average, risk assets and the commodity-oriented currencies did badly and the safe-havens did well. The US dollar was up there with the leaders and took two cents off the Loonie: sterling in the middle of the bunch added just half a Canadian cent. Investors could not really care less about the Canadian economic data, which was just as well given their mediocrity. What really drove markets over the last seven days was a newly-formed perception that inflation is on the rise. It was sparked by news that US wages are outpacing consumer prices by 2.9% to 2.1%. Investors quickly decided that this would mean three or more interest rate increases from the US Federal Reserve this year, which would be bad for a wide range of investments and good for the US dollar.

Sterling was helped by the Bank of England governor's suggestion that higher rates might happen sooner and more quickly than previously indicated. It therefore had an average, rather than a poor week.