Once again, the Loonie was the leader of the pack, beating all major peers. Warren Buffett’s rescue of mortgage lender Home Capital Group Inc. is helping the Canadian dollar, also supported by better than expected retail sales. There was further support from the crude oil market, which stabilised after a fall into bear market territory earlier in the week.
There are signs that an interest rate increase is on the cards in Canada after Bank of Canada Senior Deputy Governor Carolyn Wilkins intimated that it might be time for a rate rise in light of what she called the “impressive” growth in the economy. By and large, the strength of the Canadian dollar is fuelled by the bigger picture worldwide, and sterling appeared to be too distracted by domestic issues to pose any challenge.