Friday's jobs report was taken as a sign the U.S. central bank will be in no hurry to raise its benchmark interest rate. But Thursday's Canadian report on Canada's economy suggests the Bank of Canada is preparing to move in the opposite direction and make lending more expensive. Monetary policy in the two countries is diverging, Osborne said "and rate differentials have been moving in the Canadian dollar's favour." Indeed, the sudden rush toward the loonie could actually give the central bank pause next week, for fear of sending it any artificially higher. A rate hike next week would push the loonie up even higher "and I'm not sure the Bank of Canada wants to see that happen too quickly," Osborne said.

Source: CBC News September 01, 2017 15:30 UTC