It was a difficult week for the Canadian dollar which, on Tuesday and Wednesday, suffered its biggest two-day drop in more than a year. The Loonie started Tuesday on the back foot because of a weekend fall in oil prices and there was a general drift away from "risky" commodity-oriented currencies towards the "safe" euro and yen (and, on this occasion the US dollar too). On Tuesday morning the Canadian dollar crossed below the trend line that had supported its rally against the Greenback since mid-January, triggering further selling. On Wednesday, poorer-than-expected Canadian trade figures provided a fresh excuse to offload the Loonie.

In all, the Canadian dollar lost two and a quarter US cents and it was down by three cents against sterling. The US dollar succeeded because of a less dismissive attitude to interest rate increases this year: the pound lost out because of disappointing figures for private sector business activity in the UK.