The George Davis Report: June 2019 Edition

By George Davis
Published June 17, 2019 | 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.


What you need to know


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



1.3000 – 1.3100


1.3400 – 1.3500

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

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