Don’t miss this month’s edition of the George Davis Report, where George discusses RBC Economics’ latest forecasts, recession risks and the impact on the Canadian dollar.
What you need to know
Central banks are behind the curve, as inflation continues to rise due to supply chain issues, labour shortages and the Russia-Ukraine conflict.
Aggressive rate hikes will continue to be seen into the fall so that central banks can regain market credibility.
This implies that economic growth will be sacrificed in order to achieve inflation objectives.
RBC Economics is now forecasting a shallow recession to result in 2023, as inflation and rate increases hinder the indebted Canadian consumer and put a crimp on the housing market.
We continue to have a depreciating profile for CAD versus the USD based on our recent forecast changes.
For the trading range:
USD/CAD
Buyers
1.2700/1.2800
Sellers
1.3100/1.3200