Don’t miss this month’s edition of the George Davis Report, where George discusses the expected rebound from third wave COVID restrictions.
What you need to know
Third wave COVID restrictions have caused a moderation in economic growth.
This has had minimal impact on CAD as the BoC’s taper contrasts with a more dovish Fed.
Vaccination progress and deployment of elevated consumer savings are expected to prompt a strong rebound in growth in H2 2021.
This should set the stage for another round of tapering from the Bank of Canada.
The Fed is expected to play catch up to the BoC later this year, lending some support to the USD as interest rate expectations are re-rated.
For the trading range:
USD/CAD
Buyers
1.1900/1.2000
Sellers
1.2300/1.2400
This video is part of our monthly George Davis Report series, with ad hoc reports brought to you as current.