The George Davis Report: December 2020 Edition
By
George Davis, CMT
Published December 15, 2020
|
8 min watch
A monthly video series on the trajectory of the Canadian dollar
In this edition of the George Davis report, George reviews key CAD drivers and our 2021 forecast profile.
We review some quantitative and technical factors that have been driving price action in USD/CAD in 2020.
With US equities tracking the 2009 recovery, further gains in 2021 would present downside risks for USD/CAD.
Fiscal stimulus measures and the extension of COVID support programs should offset near-term risks to growth from the second wave restrictions.
With vaccines arriving a bit sooner than expected, upside risks to the growth outlook may lead to expectations of policy normalization in late 2021.
As such, we expect USD/CAD to sustain recent losses through H1 2021, with the possibility of an inflection point for the USD decline in late 2021.
Hedging Strategies:
USD/CAD
This video is part of our monthly George Davis Report series, with ad hoc reports brought to you as current.
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 eighteen 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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