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At the Forex currency market the Canadian Dollar rate continues to grow moderately on Thursday for the fourth consecutive session.

Forex forecast: MACD indicator for the pair USD/CAD has shifted to sideways movement in the negative area and is not giving a clear signal. Stochastic Oscillator descended into oversold zone and maintains a sell signal.

Forex recommendations: in case of rebound from 1.0100, the pair will go to 1.0090 and 1.0070. There is a high chance that the pair will consolidate at the current levels.

The Bank of Canada kept interest rate at the level of 1.0% per annum and the market was not surprised.

The head of the Bank Mr. Carney said in his speech yesterday that debts of the households began to worry the regulator, as this can cause reduction in GDP in the long term. Carney also noted that the balance of the Canadian companies is positive in general; however impact of European recession, which might last until Q4 this year, is detrimental. 

According to the updated estimates of the Bank of Canada, GDP in the country will amount to 3.1% in Q1, 2013; inflation will reduce to 1.5% in Q2 this year. At the same time, interest rate can go up during all 2013 in the moderate pace, while decline in mortgage rates will encourage boost in the volumes of lending to households.

Statistics showed that sales 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. 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.

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. 

According to the data released last week, unemployment rate rose to 7.5% in December against the forecast of 7.4%, employment rate increased by175 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

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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