The George Davis Report: October 2020 Edition

By George Davis
Published October 13, 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 risks that could lead to more volatile trading conditions in October.

 

What you need to know

1

USD/CAD reached both extremes of our expected trading range in September.

2

A number of risks are expected to linger through October and potentially create more price volatility.

3

First and foremost, a second wave of COVID infections appears to be underway, which may dampen Q4 economic growth.

4

The tapering growth momentum that we have seen through the summer months could therefore be compounded by COVID developments.

5

The US election has already contributed to cross asset volatility, and this dynamic will remain in focus the closer we get to the November 3 election date.

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.


George Davis

George Davis
Chief Technical Strategist, Fixed Income, Currencies & Commodities, RBC Capital Markets


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