1.2699 the high as the CAD follows the rest of the commodity currencies
It's being noted that there a stop buys above 1.2700. Desks in sunny Canada are also seeing leveraged traders unwinding long CAD positions and the break through 1.2600 saw those ramp up.
As usual a story about oil is never far from the frontline Canadian banks are said to be tightening up on exposure to the oil and gas sector. Canadian Western stock fell to the lowest since 2009 as they said they would need provisions for $26m against rotting oil and gas loans.
With oil prices still falling, the follow through into commodity stocks is widespread, which is also leading to a general risk off mood.
It doesn't take much these days to burst a bubble and the oil run was prime for popping. If this is the start of another downturn it could get messy.
