The shape of the Loonie's movement over the last two weeks bore a striking similarity to the direction oil prices were taking; initially higher then lower. It was the weakest among the major currencies losing half a US cent and falling by five and a quarter cents against the resurgent pound. The Canadian economic data looked reasonable enough, though the Bank of Canada governor did not wholly agree. One Canadian economist described Stephen Poloz as having a "cup half empty view of the economy".
Sterling leapt ahead after the British prime minister called a general election at short notice. Investors expect her to win a much-increased majority. That, in turn, should give her more clout in the Brexit negotiations and so allow her to secure a better deal than she would otherwise have been able to achieve. At worst, a bigger majority would banish any fears of a government defeat in the Commons.