Stocks suffered their biggest loss :

Last Friday, U.S. stocks suffered their biggest loss in nearly three years. This was in response to worries over a slow-down in U.S. corporate earnings, and a surge in oil prices, due to geopolitical tensions. The Canadian dollar closed just shy of a 14-year high vs. a weakened U.S. greenback Monday, on the heels of robust domestic retail sales data, and in anticipation of Tuesday’s expected interest rate hike. The gains were, however, tempered by reports of a new case of mad cow disease. As expected, the BoC raised its overnight rate Tuesday to 3.50%. This should see yield- hungry traders continuing to unwind U.S. dollar bets, in favor of the Canadian currency.

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-Peter R. Bain