The George Davis Report: September 2022 Edition

By George Davis, CMT
Published September 15, 2022 | 7 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 RBC’s latest interest rate forecasts and implications for the Canadian dollar.

 

What you need to know:

1

Aggressive interest rate hikes by the Bank of Canada have pushed interest rate settings into restrictive territory in a short period of time.

2

With inflation falling from a near 40-year high of 8.1% in June to 7.6% in July, a peak may be at hand.

3

However, the BoC’s core inflation measures – a better indicator of underlying inflation pressure – actually increased in July.

4

RBC Economics has revised their interest rate forecasts in response, culminating with a higher expected terminal rate.

5

The 1.3170 level remains a critical resistance hurdle to watch in USD/CAD going forward.

For the trading range:

USD/CAD

Buyers

1.2800/1.2900

Sellers

1.3200/1.3300


George Davis, CMT

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


BoCCADEconomyGeorge DavisInflationInterest RatesMacroMarketRBC Economics