The Loonie was the week's major currency leader by a goodly margin. It strengthened by one and a quarter US cents and went up by three cents against sterling. The employment data provided some help, with the addition of 55k new jobs in May. The Bank of Canada provided much more when deputy governor Carolyn Wilkins dropped heavy hints about higher interest rates.

Sterling did not get any help from the UK ecostats. Industrial production delivered another disappointment and retail sales fell in May. Inflation came in at 2.9% (CPI) and 3.7% (RPI) while the pace of wage increases slowed to 2.1%, squeezing disposable incomes still further. However, three members of the Monetary Policy Committee voted to increase interest rates. It does not mean an actual increase is imminent but investors saw their decision as a big positive for the pound.