Don’t miss this month’s edition of the George Davis Report, where George discusses the recent changes made to our economic forecasts.
What you need to know:
The tariff impact has not been as bad as originally feared, mitigating some of the downside risks to growth.
In retrospect, the USMCA trade agreement has protected a large majority of Canada’s exports to the US from additional tariffs that have affected other countries.
Coupled with tariff delays, these developments have caused RBC Economics to firm up their Canadian and US growth forecasts relative to their spring projections.
While our BoC call is unchanged, we have pushed out the expected starting point for renewed Fed interest rate cuts.
Trade and geopolitical uncertainty, asset reallocation and hedging cost considerations should continue to weigh on the USD going forward, causing us to lower our 2026 USD/CAD profile.
For the trading range:
USD/CAD
Buyers
1.3500/1.3600
Sellers
1.3900/1.4000
