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.


What you need to know


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:






This video is part of our monthly George Davis Report series, with ad hoc reports brought to you as current.

George Davis, CMT

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

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