In this edition of the George Davis report, George discusses our 2020 economic outlook and forecast revisions, the lingering uncertainty around US/China trade negotiations and layered hedging strategies.
What you need to know
We are forecasting near-trend growth of 1.7% in 2020
The growth profile will be characterized by some weakness in the first half of the year, followed by a firmer second half
The weak November employment report is not a concern at this juncture, as it represents a long-awaited correction from an unsustainable pace
We have pushed out our forecast for a rate cut to Q2 2020 from Q1 2020 previously
We anticipate a smooth policy transition when Bank of Canada Governor Poloz steps down in June 2020
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