Don’t miss this month’s edition of the George Davis Report, where George discusses recent changes to RBC’s Canadian dollar forecasts.
What you need to know:
1
The market has aggressively walked back expectations for US rate cuts this year as the potential for a soft landing increases.
2
This has resulted from firmer than expected economic growth, underpinned by strong job growth, low unemployment and firm wage gains.
3
This has caused our US rate strategists to remove some Fed cuts from their forecast profile.
4
Our Canadian rate strategists continue to expect 100 bps of rate cuts from the Bank of Canada, beginning in June.
5
Our US rate revisions imply more USD strength than originally expected.
For the trading range:
USD/CAD
Buyers
1.3300/1.3400
Sellers
1.3700/1.3800
