The George Davis Report: September 2019 Edition

Published September 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 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.

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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