The George Davis Report: May 2022 Edition
By
George Davis, CMT
Published May 16, 2022
|
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 why the Bank of Canada will have to remain aggressive on the monetary policy front.
The Bank of Canada raised rates by 50bp at their April meeting – the largest rate increase since 2000.
Economic data since then – including CPI, GDP and employment – suggest that the BoC will have to remain as aggressive at their June meeting.
The Canadian dollar has been under pressure despite the expectation of higher domestic interest rates.
Other factors, such as broader USD direction and equity markets, are more important drivers of USD/CAD than interest rates at the moment.
The recent break above the 1.2950 level has important intermediate implications for USD/CAD.
For the trading range:
USD/CAD
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 twenty-two international awards in the FX, fixed income, commodity and emerging markets asset classes. George was also awarded Technical Analyst of the Year six times by the Technical Analyst magazine and once by the Canadian Society of Technical Analysts, in addition to being inducted into the CSTA Hall of Fame in 2017. George has a Bachelor of Commerce (Honours) from Concordia University, holds the Chartered Market Technician (CMT) designation and is a Managing Director of RBC Capital Markets.
CADDomestic Interest RatesEconomyEquity MarketsGeorge DavisMarketMonetary Policy
