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

1

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

2

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

3

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

4

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

5

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

Buyers

1.3700 – 1.3900

Sellers

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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