Don’t miss this month’s edition of the George Davis Report, where George discusses RBC’s latest interest rate forecasts and implications for the Canadian dollar.
What you need to know:
Aggressive interest rate hikes by the Bank of Canada have pushed interest rate settings into restrictive territory in a short period of time.
With inflation falling from a near 40-year high of 8.1% in June to 7.6% in July, a peak may be at hand.
However, the BoC’s core inflation measures – a better indicator of underlying inflation pressure – actually increased in July.
RBC Economics has revised their interest rate forecasts in response, culminating with a higher expected terminal rate.
The 1.3170 level remains a critical resistance hurdle to watch in USD/CAD going forward.
For the trading range:
USD/CAD
Buyers
1.2800/1.2900
Sellers
1.3200/1.3300