The George Davis Report: October 2021 Edition
By
George Davis, CMT
Published October 21, 2021
|
6 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 the push and pull impact that energy prices and other factors are having on the Canadian dollar.
There are no major changes to our growth, inflation and currency forecasts after the Canadian election result.
Many clients are wondering why USD/CAD is not lower than current levels after a 15% rally in the price of WTI crude oil since late September.
While USD/CAD has declined, CAD gains on the crosses have been more material - especially against JPY.
We examine our correlation framework to isolate the tug of war impact that oil prices and broad USD direction are having on USD/CAD.
Price action since July of this year points to an equilibrium for USD/CAD near 1.2500.
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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