The Pound-to-Canadian Dollar rate more than unwound the last of its gains for the week on Friday as the strength of the Loonie collided with Brexit-inspired weakness in Sterling, although with the clock running down rapidly the risk in the short-term could be that the Pound weakens further before any recovery.

Canada's Dollar advanced on all majors except Norway's Krone and Australia's Dollar as an upbeat mood and bid for risk assets prevailed across markets, although its gains over the Pound were the most notable.

"The correlation between the performance of G10 FX rates and developed market equities has continued to strengthen. The strongest correlations are for CAD and AUD which have risen back to their highest levels since late July," says Derek Halpenny, head of research, global markets EMEA and international securities at MUFG. "CAD and NOK have become more correlated with the price of oil. It is the highest oil price correlation for CAD since the summer."

Friday's gains helped the Loonie pare what were in many cases declines for an otherwise soft week, while for Sterling the opposite applies with explosive gains to open the week having been followed by steady declines since. 

The ticking Brexit clock is the root of nascent losses in the Pound with "important differences" keeping the two sides from an agreement after London was reported to have batted away a "derisory" EU proposal on fisheries access.

"The GBP is the among the few major currencies losing ground against the dollar through the overnight session as both sides of the English channel express doubts over the possibility of a trade agreement between the UK and the EU as negotiators prepare for talks over the weekend—with time running out," says Shaun Osborne, chief FX strategist at Scotiabank. "Ultimately, we believe a full-fledged agreement is a remote possibility and see the GBP underperforming through year-end."