The pound suffered yet more weakness on Friday, after the release of worse than expected GDP figures, a 0.3% drop against a forecast of a -0.1%, reason for the poor reading were the unwinding of the economic boost from the Olympic Games, and plunging oil and gas output, which now leaves the country on the brink of a triple-dip recession. Despite a pickup in unemployment figures, a budget-deficit squeeze from the government and heavy snow this month, all raise the likelihood that GDP will remain suppressed and the pound under pressure in short.
The Canadian dollar continues its’ weakness due to a sharp drop in inflation in Canada taking the market by surprise. Previously a key driver of Canadian strength was the consistent rhetoric from the Bank of Canada that an increase in interest rates was imminent. However the B of C had to play down the hype as the expectation of a 0.2% decrease in inflation in fact came in at a drop of -0.6%, a three-year low. “The inflation data was much softer than expected by consensus, although consistent with growing economic slack in Canada,” the inflation data supports the BoC’s dovish turn this week, and that interest rate hikes unlikely.
Pre carnival party in a university town in Brazil turned deadly for approximately 250 young adults. Unfortunately reality is not going to bring anyone back. Hopefully a lesson is learned, to avoid a similar occurrence in the future. 
Sincerely- Philip Magnoli- My friends call me Don Filippo – The FX Specialist – www.donfilippo.ca
416-362-1300 1-877-943-6939 1-877-94 (FOREX)
I think I love you!