Don’t miss this month’s edition of the George Davis Report, where George discusses RBC’s revised Fed call and the impact on our Canadian dollar forecast.
What you need to know:
We provide a quick message to clients relating to a new Derivatives Business Conduct Rule coming into effect in late September that will impact those who hedge foreign currency.
On the market side of things, the Fed is set to kick off an easing cycle later this month.
However, with a normalization in the labour market now starting to accompany progress in slowing inflation, our US rate strategists have changed their Fed call.
They now see successive meeting-to-meeting cuts through next May as opposed to quarterly moves previously.
With our new profile arguing for a shallower adjustment cycle relative to current market pricing, we discuss the resulting changes to our USD/CAD forecasts.
For the trading range:
USD/CAD
Buyers
1.3350/1.3450
Sellers
1.3750/1.3850
