Oil currencies were battered to start the trading week after the most immediate crude contract had the largest drop on record, a 40% decline below the $11 a barrel level. With oil prices plunging to the lowest levels since 1986, the Canadian dollar, Russian ruble and Norwegian krone all tumbled, but failed to take out last week’s respective lows.
The initial shock to the Canadian dollar and other oil currencies however was short-lived as investors realize today’s crash was more about no one wanting to take delivery of WTI crude contracts and less of any major fresh news on the supply and demand side for crude.
The main trade in FX remains whether safe-havens strengthen if the recent global rebound with risky assets is faded this week.
Gold
The initial shock to the Canadian dollar and other oil currencies however was short-lived as investors realize today’s crash was more about no one wanting to take delivery of WTI crude contracts and less of any major fresh news on the supply and demand side for crude.
The main trade in FX remains whether safe-havens strengthen if the recent global rebound with risky assets is faded this week.
Gold
