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Atthe Forex currency market the Canadian Dollar rate almost stands still onMonday due to ambiguous external background.

Forex forecast: MACD indicator for the pair USD/CAD is in the positive area and ismoving along the signal line, not giving a clear signal, while volumes arebelow average. Stochastic Oscillator remains in the oversold zone, and isgiving a sell signal.

Forex recommendations: in case of breakdown at the level of 1.0150,the pair will go to 1.0140 and 1.0120.

It became known on Friday that unemployment rate in Canadaincreased by 0.1% in November, up to 7.4%, while the number of employeesreduced by 18 thousand. Moreover, share of labour force decreased by 0.1%, to66.6% last month. GDP in Canada rose by 3.5% y/y in Q3 against the reviseddecline of 0.5% in April-June. Economists predicted growth of 3%. 

CPI rose by 0.2% (+2.9% y/y) in October against the forecast ofgrowth of 0.1% (+2.7% y/y). The indicator happened to be lower than theprevious level of 3.1% y/y, however, it is still within the range of 1-3%specified by the Bank of Canada. Last month, prices in Canada increased mostlyfor gasoline and food. 

Earlier the head of the Bank of Canada Mr. Carney said that the regulator willmaintain the rate at the level of 1% due to the influence of Europeandevelopments. He believes that situation with European debt has deterioratedprospects of the global economy and spread panic in the financial markets.Taking into account the foregoing it is obvious that the program of providinghelp to the banks will be continued. The bank of Canada along with otherlargest world's banks supported the idea of the U.S. FR to lower swopinterest rates which will enable to increase liquidity of the USD at the marketand stabilize monetary situation. Canadian monetary politician Mr. Flaherty notedthis week that situation in the world economy would not change until Europeallocates more resources to fight against crisis. He shares point of view ofGerman politicians and IMF that lost time will cost expensive price toEurozone.

The Bank ofCanada believes that country's GDP will amount to 2.8% in 2011 (declineby 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 lowdemand in the U.S. impedes progress in the index and expensive CAD also offersa challenge. The rise in the interest rate in Canada will directly depend onstability in economic growth.

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