It was a broadly positive week for commodity-related currencies. With oil prices nearly 5% higher and a downward tilt to global interest rates investors were in an upbeat mood and the Loonie reaped some of the benefit. It dipped last Friday when a particularly strong US employment report coincided with news of the loss of -31k Canadian jobs but a strong 57.0 reading for the Ivey purchasing managers' index half an hour later took away some of the sting. The Loonie eventually made a net gain of a third of a US cent.
It did better against sterling, picking up nearly three cents for a three-year high. Sterling remains plagued by the prospect of another interest rate cut before year-end. That outlook was reinforced by an article in The Times, written by MPC member Ian McCafferty, which reiterated the threats made by the Bank of England governor the previous week.