The George Davis Report: August 2021 Edition
By
George Davis, CMT
Published August 17, 2021
|
8 min watch
A monthly video series on the trajectory of the Canadian dollar
Don’t miss this month’s edition of the George Davis Report, where George discusses an overshoot in USD/CAD and event risk in the weeks ahead.
A Fed shift at their June meeting produced a bullish long-term trend reversal for USD/CAD.
This, along with positioning and “peak growth” concerns caused an extension to 1.2800 in July.
Vaccination progress and the current pricing for central bank policy moves suggest that the move to 1.2800 was an overshoot.
The Fed’s Jackson Hole Economic Policy Symposium and the September policy meeting serve as near-term risks, with further crystallization of the tapering process likely to provide another boost for the USD.
The trend reversal in USD/CAD points to a shift in the hedging pendulum as a return toward the low near 1.2000 is unlikely.
For the trading range:
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 nineteen 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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