Among the major currencies the Loonie was one of the weakest performers, losing two and a quarter cents to sterling and dropping two thirds of a US cent. Last Friday's Canadian economic data had more than a little to do with it: whilst inflation was bang on target at 1.3% retail sales for June looked fairly dismal, falling by -0.1% on the month and by -0.8% when motor cars were taken out of the reckoning.

The pound and the US dollar, meanwhile, were doing well. Sterling was buoyed by a continuing cut-back in short positions following better than expected UK economic data. The US dollar was wining support as investors revised their expectations for American interest rates. Pricing a week ago in the financial futures market gave only a 20% probability to a rate hike next month. Today that was up to 32%, still not odds-on but no longer out of the question.