The George Davis Report: April 2023 Edition

By George Davis, CMT
Published April 24, 2023 | 8 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 recent shift in interest rate expectations, growth concerns and the impact on CAD.

 

What you need to know:

1

Markets have stabilized after the March tremors that affected the global banking sector.

2

A bullish long-term trend reversal for stocks and a rally in Bitcoin are a testament to improved risk sentiment.

3

This, along with crowded positioning, has limited rallies in USD/CAD to the 1.3800/50 area.

4

While a tightening in credit conditions are stoking fears of a slowdown/recession in Canada and the US, market pricing for rate cuts might be overdone – especially in the US.

5

We continue to favour moderate CAD weakness, with the BoC maintaining its “conditional pause” as inflation and supply chain pressures gradually ease.

For the trading range:

USD/CAD

Buyers

1.3200/1.3300

Sellers

1.3600/1.3700


George Davis, CMT

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


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