Don’t miss this month’s edition of the George Davis Report, where George discusses the Ukraine situation and implications for Bank of Canada policy settings.
What you need to know
1
The risk off move resulting from Russia’s invasion of Ukraine has not been a “traditional” one.
2
While equities and bond yields have declined, commodities have bucked the risk off move by trading aggressively higher.
3
This dichotomy has had implications for the Canadian dollar and will continue to do so going forward.
4
The Bank of Canada kicked off a tightening cycle with a “hawkish hike” at their March meeting.
5
Strong growth and inflation concerns will keep rate hikes on the table this year.
For the trading range:
USD/CAD
Buyers
1.2500/1.2600
Sellers
1.3000/1.3100