The George Davis Report: May 2020 Edition

By George Davis
Published May 19, 2020 | 5 min watch

A monthly video series on the trajectory of the Canadian dollar

In this edition of the George Davis report, George discusses the upcoming leadership change at the Bank of Canada and a shift in drivers of the Canadian dollar.


What you need to know


Tiff Macklem will be taking over from Stephen Poloz as Bank of Canada Governor in early June.


We expect a smooth transition, with the effective lower bound for interest rates a focal point for monetary policy.


Oil has been a major driver of the Canadian dollar over the last two years.


However, a major correlation shift now sees equity markets take pole position.


The market is currently viewing stocks as the best proxy for risk sentiment, similar to the uncertainty during the Great Recession in 2007-2009.

Hedging Strategies:



1.3700 – 1.3900


1.4150 – 1.4350

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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