The George Davis Report: November 2019 Edition

By George Davis
Published November 12, 2019 | 4 min watch

A monthly video series on the trajectory of the Canadian dollar

In this edition of the George Davis report, George discusses the Bank of Canada’s Business Outlook Survey results and what ultimately led to a change in policy bias.


What you need to know


Stable autumn business sentiment caused USD/CAD to test the bottom end of our 1.3000-1.3500 trading range for hedging strategies


Despite this development, the Bank of Canada surprised the market by shifting its policy bias from neutral to dovish


An “insurance” rate cut was contemplated as continued global uncertainty is expected to test the resiliency of the Canadian economy


Consumption and housing should be watched closely to determine if they can offset downside growth risks from exports and business investment


The Bank’s dovish stance will make it difficult for USD/CAD to sustain moves below the 1.3000 threshold as trade dynamics remain in focus

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

George Davis
Chief Technical Strategist, FX Trading, Strategy & Sales, RBC Capital Markets

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