Don’t miss this month’s edition of the George Davis Report, where George discusses an inflection point at the June Bank of Canada meeting.
What you need to know:
The Bank of Canada became the first of the G7 central banks to cut interest rates at their June meeting.
The decision to cut rates was taken amidst increased confidence that monetary policy settings were restrictive enough to bring inflation back to their 2% target.
While data dependency will remain key going forward, we believe that conditions will remain favorable for additional rate cuts.
The potential for policy divergence with the Fed will leave CAD vulnerable to depreciation in the second half of this year.
The 1.4000 level has some historical significance which should be taken into consideration.
For the trading range:
USD/CAD
Buyers
1.3400/1.3500
Sellers
1.3800/1.3900
