During the early part of the week it was the Loonie that was on the defensive. The main catalysts for its setback were the data for Canadian producer prices and gross domestic product. All were lower on the month and the economy's -0.1% shrinkage in August was particularly off-putting to investors. The Canadian dollar fairly easily recovered its composure for a weekly gain of a third of a US cent.
Sterling's week began well and ended badly, with the loss of one and a half Canadian cents. It was all down to the Bank of England's decision to raise Bank Rate from 0.25% to 0.5%. The move was almost universally expected and investors were taken aback when the bank stressed that there would be no further increase for at least a year. They knocked an immediate two cents off sterling and it has yet to show any sign of recovery.