The George Davis Report: February 2020 Edition
By
George Davis, CMT
Published February 18, 2020
|
4 min watch
A monthly video series on the trajectory of the Canadian dollar
In this edition of the George Davis report, George discusses two main issues: A dovish shift by the Bank of Canada and the introduction of our longer term CAD forecasts for 2021
An output gap has opened for the Canadian economy as weaker trade and business investment weighed on growth in 2019.
The recent coronavirus outbreak has created additional downside risks to growth.
This has caused the BoC to shift to a more dovish policy stance.
However, the benefits of potential insurance rate cuts will need to be balanced against financial vulnerability risks.
Our longer-term CAD forecasts for 2021 are primarily driven by interest rate expectations.
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, CMT
Chief Technical Strategist, Fixed Income, Currencies & Commodities, RBC Capital Markets
With over 30 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 twenty-two international awards in the FX, fixed income, commodity and emerging markets asset classes. George was also awarded Technical Analyst of the Year six times by the Technical Analyst magazine and once by the Canadian Society of Technical Analysts, in addition to being inducted into the CSTA Hall of Fame in 2017. George has a Bachelor of Commerce (Honours) from Concordia University, holds the Chartered Market Technician (CMT) designation and is a Managing Director of RBC Capital Markets.
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