Don’t miss this month’s edition of the George Davis Report, where George discusses the factors behind the recent strength in the Canadian dollar.
What you need to know:
1
The average effective tariff rate on Canadian exports to the US has increased to 4.5% - but it is still the lowest of all US trading partners.
2
De-escalation in the trade war during the month of May has trimmed downside risks to growth in Canada and the US.
3
USD/CAD has traded down to a new 8-month low in early June despite lingering tariff uncertainty.
4
We discuss the reasons behind the CAD strength and whether or not we think that it can persist.
5
Our expected trading range for the month ahead remains the same as last month.
For the trading range:
USD/CAD
Buyers
1.3500/1.3600
Sellers
1.3900/1.4000
