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At the Forex currency market the Canadian Dollar rate stands still on Wednesday morning. However, there is a chance that growth that has been observed yesterday could be continued.

Forex forecast: MACD indicator is moving in the negative area for the pair USD/CAD and goes down, maintaining a pair sell signal. Stochastic Oscillator has come back to the oversold zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.9480, the pair will go to 0.9470 and 0.9450.

If downward breakdown does not take place, the pair will consolidate near the current levels.Yesterday, the Bank of Canada left interest rate at the previous level of 1.0%, which agreed with the forecast. According to the follow-up comments of the regulator, certain monetary incentives can be phased out in the coming future and current level of inflation, which is about 3.7%, is assessed as temporary. At the same time, global inflationary pressure is obviously growing.

The Bank of Canada believes that GDP of the country will account to 2.8% in 2011 (reduction by 0.1% versus forecast of April); 2.6% in 2012 and 2.1% in 2013.Export performance in Canada is negative, according to the Bank estimates, because low demand in the USA prevents the indicator from growing and expensive CAD makes situation worse.

The growth in the interest rate in Canada will directly depend on stability in the economic development.According to the plan of the Finance Ministry of Canada, presented earlier, the country shall revert to the budget surplus by 1014.Balance of current account in Canada was at the level of –CAD $8.92   billion in QI against the level of CAD$10.28 billion in QIV last year.

In addition, real GDP of basic prices increased by 0.3% (+2.8% y/y) in QI against revised level of -0.1 % m/m in February.It became known earlier that sale of new cars in Canada fell by 6.1% m/m in May against preliminary forecast of -1.1% m/m.In addition, purchase of the Canadian securities by foreign investors increased by C$15.442 billion in May against revised level of C$8.523 billion in April.

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