Forex Blog
Blog-FX.Com

At the Forex currency market the Canadian Dollar rate retreats on Friday after four days of growth and achieving local highs of 1.0070. The CAD has not come so close to parity since October last year.

Forex forecast: MACD indicator for the pair USD/CAD is going down in the negative area and is giving a sell signal. Stochastic Oscillator remains in the oversold zone and maintains a sell signal.

Forex recommendations: in case of rebound from 1.0120, the pair will go to 1.0110 and 1.0090. There is a high chance that the pair will consolidate at the current levels.

Publication of Canadian statistics, which is expected this afternoon, can change force balance in the pair USD/CAD. However, most likely, players will prefer profit taking before the weekend.

As per available data, sales increased by 0.2% in the manufacturing sector of Canada against expectations of 1.2%, the main driver of the growth was general rise in the sector and improvement in some of its sections: such as industrial equipment sector, for example. Number of new orders in the sector rose by 3.7% in November, stocks in the warehouses: by0.4%.  

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% inQ2 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. 

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%.

Tags: