The George Davis Report: May 2020 Edition
By
George Davis, CMT
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.
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:
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, 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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