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At the Forex currency market the Canadian Dollar rate almost stands still at trades on Friday, waiting for new drivers at the market.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and is going up slightly, giving a pair buy signal. Stochastic Oscillator goes down in the neutral zone and is giving a sell signal. 

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9930, the pair will go to 0.9920 and 0.9900. Otherwise, the level of1.0040 will become the target for the pair.

The data released earlier showed that new factory orders in the manufacturing sector fell by 2.8% in December against preliminary expectations of +3.6%. Outstanding orders reduced by 1.6% (against +1.2% previously). 

Sales in this sector were not high: growth amounted to 0.6% in December against expectations of +1.9%.

The CAD receives support outside from the market: this winter was really cold in Europe which increased demand for energy supply.

The data released earlier showed that real GDP in Canada fell by 0.1% m/m(+2.0% y/y) in November against expectations of growth of 0.2% m/m.

Statistics released earlier showed that leading indicators index in Canada rose by 0.8%m/m in December against the forecast of +0.6% m/m. Latest statistics showed that CPI in Canada fell by 0.6% m/m (+2.3% y/y) in December against the forecast of -0.1% m/m. Despite this obvious fact, the data requires some clarification. Annual growth of CPI has been minimal since February 2011, and inflation reduced due to decline in prices for gasoline and other fuel. Therefore, basing on the current inflationary situation, the Bank of Canada can keep inflation at the existing level for some more time with no damage for its monetary policy.

The Bank of Canada estimates, that inflation will slow down to +1.5% on annual basis in April-June.

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