The Loonie had to contend with two handicaps; falling oil prices and a cautious mood among investors. The caution, which affected all commodity-related and emerging market currencies, arose from a suspicion that central banks - particularly those in Tokyo and Frankfurt - were under growing political pressure to rethink their money-printing quantitative easing activities. Any slowdown in the flow of money would erode asset prices, including those of commodities. Of particular concern to the Canadian dollar was a -7.5% decline in the price of oil, which reversed the previous week's gains.

Meanwhile investors were blowing hot and cold about the possibility of an imminent rise in US interest rates and they were losing some of their earlier enthusiasm for sterling, even though the UK managed to deliver some decent economic data. The Loonie eventually lost one and a half US cents and it fell two cents against the pound.