It was an eventful week for the Canadian dollar. On Tuesday the Loonie was looking the worse for wear as a result of data showing that the Canadian economy contracted by -0.5% in September, bringing quarterly growth down to 2.3%. On Wednesday it strengthened after the Bank of Canada kept its benchmark interest rate steady at 0.5%. Although no change had been expected by investors, the BoC statement showed no sign of any inclination towards lower interest rates.
On Thursday the Canadian dollar, along with other commodity-oriented currencies, took a dive after the European Central Bank failed to deliver the aggressive money-printing measures that investors had expected. The outcome was a loss of quarter of a US cent for the Loonie and it fell by more than a cent against sterling. This Friday's Canadian and US employment figures could also push it around.