Over the past week, sterling, bolstered by news of a 0.3% expansion in Q1 and reduced chances of fresh BOE action before Carney takes the reins in July, was the best performing major currency. A short squeeze in the yen helped it almost match sterling's 1.6% gain against the dollar. Defying our expectations for more weakness, the Canadian dollar was also among the top performers, helped by a rally in crude oil. The 30- and 60-day correlation of returns (percentage change) between WTI and the Canadian dollar is the highest six months. Crude oil prices were higher six of the past seven sessions. Looking forward, the ... (full story)