The George Davis Report: December 2020 Edition

By George Davis
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.


What you need to know


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:






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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