Here's Allan Robinson's At The Bell which you'll find in Friday's newspaper:

The Canadian dollar has been the weakest of the world's major currencies against the U.S. dollar during the past five days, declining 1 per cent despite the continued strength in oil, gas and other commodities.

“Analysts are looking at the elevated prices of commodities and questioning whether it is sustainable or a short-lived phenomenon,” said Gareth Sylvester, a currency strategist with San Francisco-based HIFX Inc.

WHAT ARE THE EXPECTATIONS?

The loonie continues to be trading in a narrow range relative to the U.S. dollar as strategists look at the actual volumes of exports rather than the rising dollar amounts that are up because of the price changes.

During the past three months, the correlation between the Canadian dollar and oil has been 0.16 per cent, while the correlation with the Commodity Research Bureau's index, which was up 20 per cent during the second quarter – the greatest rise in 35 years – was 0.18 per cent, Mr. Sylvester said.

The Canadian dollar has traded in a narrow range relative to the U.S. dollar since November, but there may be several reasons for its recent underperformance, said Steve Malyon, a currency strategist with Scotia Capital Inc. “I think we go through periods that the Canadian dollar underperforms when the U.S. dollar is under pressure,” he said.

Meanwhile, there has been a lack of domestic economic data to draw the attention of traders to the loonie, while the correlation between the loonie and crude oil is virtually non-existent, Mr. Malyon said. “I think there is a lingering concern, and justifiably, that where the U.S. economy goes, Canada will follow.”

Nevertheless, there are fundamental factors suggesting the Canadian dollar could be stronger. The general health of the domestic economy is better than south of the border and there has been a 35-basis-point shift since mid-June in the yield differential between two-year U.S. Treasuries and the corresponding Canadian government bonds in favour of the loonie, Mr. Malyon said. (A basis point is 1/100th of a percentage point.)

But as for yesterday, it was all about a U.S. dollar rally with the employment numbers better than expected and some relief that the European Central Bank does not appear to be embarking on a series of rate hikes as several of the countries within the group struggle.