The George Davis Report: September 2019 Edition

By George Davis
Published September 17, 2019

A monthly video series on the trajectory of the Canadian dollar

In this edition of the George Davis report, George discusses how the broader macro-economic landscape in Canada has led to the steadfast nature of the Bank of Canada’s policy stance 

 

What you need to know

1

A divergence continues to exist between the US Federal Reserve’s policy stance and that of the Bank of Canada.

2

Canadian economic growth is running close to potential, with inflation right at the BoC’s 2% target.

3

Canadian interest rates are below those of the US – despite firmer Canadian inflation trends relative to target.

4

This will provide the BoC with more time to remain on the sidelines before perhaps joining the Fed and other global central banks in cutting rates.

5

USD/CAD features a key long-term (7-year) support trendline near 1.3050 that should be monitored.

Hedging Strategies:

USD/CAD

Buyers

1.3000 – 1.3100

Sellers

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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