Moody’s lowered its outlook for the Canadian banking system to negative from stable, citing lower systemic support in an annual review. They say that it’s less likely that the Canadian government will bail out Canadian banks in the event of trouble.
USD/CAD is slumping today after failing to break 1.0700 overnight. The pair recently touched a session low of 1.0663 as broad US dollar weakness overwhelms any CAD-specific news.
