Currency Update - The George Davis Report: June 2020 Edition

Jun 17, 2020 | Tom McGill


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RBC Capital Markets is maintaining their intern program through the pandemic to provide students with experience and develop talent for the future.  The June addition of the George Davis report is particularly good because it allows some of the interns to question George Davis himself in this recording.

 

Click Here to listen to the full report.

 

Helpful FX terminology:

  • "USDCAD" - Refers to the Canadian dollar and, more specifically, the value of CAD relative to the value of USD, (USD/CAD). 
    • A helpful thought is that you "buy the base".
  • USDCAD appreciation - The value of the CAD increases retaliative to the USD.  
    • Example: USDCAD moves from 1.40 to 1.35
      • The base currency, CAD, has appreciated because the ratio, (USD/CAD), decreased.

It's normal to get mixed up in the terminology.  Our small team of three has more than 50 years if FX trading experience and we still don't use the official FX terminology.  We execute FX trades by identifying the currency to sell and the currency to buy.