The George Davis Report: June 2019 Edition
Published June 17, 2019
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3 min watch
A monthly video series on the trajectory of the Canadian dollar
In this edition of the George Davis report, George discusses how a shift in interest rate expectations has caused a narrowing in US/Canada interest rate differentials and the impact on the Canadian dollar.
There has been an important shift in interest rate expectations since our last video update.
In particular, the market has priced in more aggressive rate cut expectations in the US relative to Canada.
The net result has been a narrowing in US-Canada interest rate differentials.
USD/CAD has responded by breaking a key long-term support trendline near 1.3350.
This should present more attractive levels for buyers of USD/CAD to cover some of their exposure.
Hedging Strategies
USD/CAD
This video is part of our monthly George Davis Report series, with ad hoc reports brought to you as current.
© RBC Capital Markets, LLC, RBC Dominion Securities Inc., RBC Europe Limited 2018
George Davis
Chief Technical Strategist, FX Trading, Strategy & Sales, RBC Capital Markets
With over 25 years of market experience, George Davis is responsible for RBC’s Canadian dollar forecasts as well as intermarket technical analysis research that covers the FX, fixed income and commodity asset classes. Prior to this, he was a Vice President on RBC’s spot Canadian dollar and forward foreign exchange desks in Toronto and a foreign exchange Dealer in Montreal.
His technical research has been recognized via fourteen international awards in the FX, fixed income, commodity and emerging markets asset classes. George was also awarded Technical Analyst of the Year four times (in 2010, 2013, 2017 and 2018) by the Technical Analyst magazine and in 2016 by the Canadian Society of Technical Analysts, in addition to being inducted into the CSTA Hall of Fame in 2017.
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