Don’t miss this month’s edition of the George Davis Report, where George discusses Omicron risks and the outlook for CAD on the crosses in 2022.
What you need to know
Omicron risks are viewed as a short-term speed bump on the road to economic recovery.
While the short-term risks to economic growth are expected to be recouped later in the year, inflation considerations should not be ignored.
This dynamic will make the January 26 Bank of Canada interest rate decision more interesting.
A hawkish pivot is more likely, making subsequent meetings “live” for rate hikes.
Our rate forecasts favour CAD strength on the major crosses as 2022 progresses.
For the trading range:
USD/CAD
Buyers
1.2300/1.2400
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.