By a complete accident of timing the Canadian dollar was unchanged on the week against sterling. Both currencies strengthened by 0.7% against the US dollar: in the Loonie's case that was worth half a US cent.

The only Canadian economic statistics of any consequence were last Friday's employment data. A higher-than-expected 7.1% rate of unemployment was offset by a slightly above-forecast 12.1k figure for new jobs. It was therefore mainly the economic developments in the States and Britain that drove the Loonie. Sterling was troubled by disappointing UK balance of trade figures and unexpectedly low -0.1% inflation. The US dollar was hurt by bewilderment about the interest rate outlook: there was no coherent story from the Federal Reserve and the ecostats were equally confusing, with weak retail sales growth and a "higher"-than-expected inflation reading of 0.0%.