We are pleased to bring you the latest edition of the series produced by our colleagues in RBC Capital Markets, hosted by George Davis, CMT, the award winning Chief Technical Analyst for Fixed Income and Currency Strategy.
In this installment, George discusses the changing growth expectations in Canada and their impact on monetary policy settings and on the Canadian dollar. With the combination of no population growth this year and labor productivity hovering around 0%, GDP growth is expected to be between 0 and 1%. This will cause investors to recalibrate their definition of what data is considered weak and what data is considered strong.
For the month ahead, George sees 1.3600 as the downside limit with 1.4100 on the topside.