To describe the FX market as muddled over the last few days would be to credit it with a wholly unjustified semblance of orderliness. Investors were confident, scared, optimistic, frightened and upbeat, in that order. The Loonie's status as a commodity-oriented "risky" currency meant that it was bought, sold, bought, sold and bought again as investors' mood changed almost with their socks. Last Friday's Canadian economic data told conflicting stories. The 1.7% monthly increase for retail sales in November was far stronger than analyst had predicted, while the 1.6% inflation rate for calendar 2015 was lower than expected.
The Loonie outperformed its antipodean cousins, thanks mainly to a 10% rebound in the price of oil. It strengthened by a net cent and a quarter against sterling and added one and a quarter US cents.