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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 positions amid weakness of USD

At the Forex currency market the Canadian Dollar rate continues to rise in the thin market amid weak positions of the USD.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and is moving along the signal line, preventing from forming a signal. Stochastic Oscillator is in the oversold zone and is not giving a clear signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0015 the pair will go to 1.0030 and 1.0050. If the level of 1.0000 is broken down, traders’ targets will become the levels of 0.9990 and 0.9950.

Worth noting that currencies’ pairs movement can be hardly predictable in the thin market.
In general, the situation in the Canadian economy remains unchanged.

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.
We would remind that core consumer price index in Canada remained unchanged in November, following the growth by 0.4% in October; at the same time growth on annual basis has declined to 1.4% 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.

Last week Finance Minister of Canada Mr. Flaherty noted that the 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.
According to Flaherty 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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