When Bank of Canada governor Stephen Poloz told a European Central Bank forum that low interest rates "have done their job" he confirmed investors' expectations that the bank is likely to increase its interest rate benchmark at the policy meeting in a fortnight's time. He echoed the sentiment implied by the heads of the ECB and the Bank of England on the same podium: both seemed to accept that rates could move higher when the economic circumstances are right.
Investors saw it all as positive for the currencies concerned. The Loonie did not see as much buying as the other two, mainly because investors were already fairly well teed up for an increase in a fortnight's time. It strengthened by one and third US cents. The euro and the pound both did better, rising by an average of 1.3%. Sterling added one and a quarter Canadian cents.