Don’t miss this month’s edition of the George Davis Report, where George discusses RBC’s forecast revisions for the Canadian dollar and the upcoming federal budget.
What you need to know
Our forecast revisions suggest that the Canadian dollar can sustain its recent gains through Q2 of this year.
Monetary policy expectations are anticipated to result in mild CAD weakness in the second half of 2021 and into 2022.
The April 19th federal budget will be the first budget release in over two years due to the COVID pandemic.
Some support programs are expected to be extended through the final stages of the pandemic, while recovery spending will likely focus on childcare, training and infrastructure.
A fiscal anchor will be required to prevent structural spending that would add to the already bloated deficit and the government should tread lightly on tax increases that could slow the recovery and offset the impact of government spending.
For the trading range:
USD/CAD
Buyers
1.2400/1.2500
Sellers
1.2800/1.2900
This video is part of our monthly George Davis Report series, with ad hoc reports brought to you as current.
