Don’t miss this month’s edition of the George Davis Report, where George discusses RBC’s latest CAD forecast revisions.
What you need to know:
USD/CAD reached a new 28-month high in September as the risk backdrop continued to deteriorate.
The resulting move to 1.3838 pushed prices above our 2022-2023 forecast profile peak of 1.3400.
Our new forecast revisions see USD/CAD moving to 1.4000 in Q1 2023 as the market prices in a mild recession in Canada.
Q1 2023 serves as a peak in our forecast profile, with CAD expected to strengthen moderately as the economy recovers from the recession.
The shift in our forecast profile will have particular importance to USD sellers through Q1 2023, followed by a more advantageous environment for USD/CAD buyers thereafter.
For the trading range:
USD/CAD
Buyers
1.3500/1.3600
Sellers
1.3900/1.4000