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At the Forex currency market the Canadian dollar rate continues ascending trend which started yesterday.

Forex forecast: MACD indicator for the pair USD/CAD is in the negative area and started a new round of decline. Stochastic Oscillator continues to fall in the neutral zone and is giving a sell signal. Ichimoku indicator shows intention of the pair to go down to strong basis at 1.0040, while the level of 1.0325 acts as resistance.

Forex recommendations: in case of rebound from 1.0325, the pair will go to 1.0090 and 1.0040.

According to statistics, sale of new cars in Canada reduced by 1.0% in November, to 137.640 thousand, smoothing over the rise achieved over the few previous months.

CPI in Canada increased by 0.1% m/m (+2.9% y/y) in November which agreed with the forecast. The growth is within the ball park, which meets with expectations and does not involve risk for the economy. The regulator had kept interest rate unchanged at the level of 1% per annum. The news did not take players by surprise, as investors assumed that the rate would be maintained at the current levels for at least another 12 months. The Bank of Canada said in the comments that negative factor, which was caused by deceleration of the global economy, can affect Canadian economic system as well, especially now when situation in the world financial platforms has worsened sharply through the fault of the Euro.

It became known earlier that house price index in Canada rose by 0.3% in November against the growth of 0.2% in October and expectations of the same level.

The Bank of Canada believes that country’s GDP will amount to 2.8% in 2011 (decline by 0.1% against the forecast in April), in 2012 it will be: 2.6% and in 2013: 2.1%.  According to the Bank, export performance in Canada is weak, because low demand in the U.S. impedes progress in the index and expensive CAD also offers a challenge. The rise in the interest rate in Canada will directly depend on stability in economic growth.

The data released last week showed that unemployment rate rose to 7.5% in December against the forecast of 7.4%, employment rate increased by 175 thousand versus expectations of growth of 15 thousand. Thus, invariably negative pattern in the Canadian employment market, which took shape in the last six months of 2011, still persists. Meanwhile, significant rise in jobs in the production sector is obvious.  GDP in Canada rose by 3.5% y/y in Q3 against revised decline of 0.5% in April-June. Economists predicted growth of the index of 3%.

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