The George Davis Report: March 2023 Edition
By
George Davis, CMT
Published March 16, 2023
|
11 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 fallout in the US banking sector and implications for monetary policy and CAD.
A brief review of our January overshoot strategy shows that it has performed well this year, based on the rebound that has been seen in USD/CAD into early March.
Upheaval in the US banking sector has reverberated through the various asset classes and caused a massive repricing of central bank policy expectations.
The unforeseen shock to financial markets has also caused some of our cross-asset relationships to break down.
The Fed will now have to decide between financial stability risks and inflation risks at their March meeting, which will set the tone for markets.
We believe that the central bank repricing is overdone, and our forecasts continue to favour a weaker CAD over time.
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.
BoCCADCross-AssetEconomyGeorge DavisInflationMarketPolicyRBC EconomicsRepricing
