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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

CAD: Canadian Dollar consolidates in narrow range

At the Forex currency market the Canadian Dollar rate consolidates in the narrow range of 0.9910-0.9950 on Tuesday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and is going down, confirming a pair sell signal. Stochastic Oscillator is planning to leave the oversold zone today and is ready to form a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9950 the pair will go to 0.9965 and 0.9980. If the level of 0.9910 is exceeded, traders’ targets will become the levels of 0.9900 and 0.9875.

Canadian economy has not changed fundamentally.
Interest rate in Canada is at the level of 1% per annum. The last increase which took place in September this year was by +25 basis points. There is an opinion at the market now that the Bank of Canada will not change the interest rate until QII next year as economic recovery rate has slowed down in the country. The rate was increased 3 times in a row this year and at the last meeting of 19 October the regulator decided not to change it again.
Schedule of the Bank of Canada meetings for 2011 is as follows: 18 January, 1 March, 12 April, 31 may, 19 July, 7 September, 25 October, 6 December.

Core index of consumer prices in Canada remained unchanged in November after the rise by 0.4% in October, the growth has slowed down to 1.4% on annual basis against the previous level of 1.8%.

Therefore, inflation demonstrated minimal increase last month for over then 2 years. It became an indicator for the Bank of Canada that interest rates will remain unchanged for quite a long time.

According to Flaherty, Finance Minister of Canada, budget for 2011 will contain measures to support economic growth of the country, with significant spending on infrastructure, education and retraining programs, which will become nearly the main items. Flaherty also thinks that there is no need to extend economic incentives program at the moment; however its reduction is not provided for either, as economic upturn is required in the country.

 

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