The George Davis Report: August 2019 Edition
Published August 20, 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 recent policy divergence has allowed the U.S. dollar to trade down to a new 9-month low and the impact of lingering and new trade uncertainty on the Canadian dollar.
Central bank policy divergence pushed USD/CAD to a 9-month low of 1.3016 in mid-July.
However, new tariff threats have offset the impact of policy divergence as trade uncertainty increases.
This uncertainty is now likely to place a floor under USD/CAD near 1.3000.
Oil prices remain a key driver for the Canadian dollar, followed by equity markets.
These variables will have to be watched closely as the trade uncertainty plays out.
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 seventeen international awards in the FX, fixed income, commodity and emerging markets asset classes. George was also awarded Technical Analyst of the Year five times (in 2010, 2013, 2017, 2018 and 2019) 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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