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At the Forex currency market the Canadian Dollar rate started to grow again after correction last night.

Forex forecast: MACD indicator is in the positive area for the pair USD/CAD and goes down, giving a sell signal. Volumes are minimal. Stochastic Oscillator is in the neutral zone and begun to go up, giving a buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0010, the pair will go 1.0080 and 1.0030. If downward breakdown does not take place, the pair will remain at the current levels.

According to the decision of the Bank of Canada, interest rate was left at the previous level of 1.00% per annum. This agreed with markets’ expectation.

However, in the comments, regulator announced downgrade of his forecasts for economic growth and inflation. Thus, recurrence of the economy of Canada to the previous levels will take longer than previously expected, since debt crisis in Europe and weakness of American economy has a significant impact on the economic developments in the country.

Forecast for economic growth for the current year was lowered to 2.1%; revised to 1.9 ( 2.6%  previously) for 2012. In 2013 the situation seems more optimistic: the forecast was revised up to 2.9% from the previous level of 2.1%.

?? ??????? ??? ??????? ?? ????? ?????? ?? 2,1% ? 2,8%, ?? 2012 ??? - ??????????? ?? 1,9% (????? 2,6%). ? 2013 ???? ???????? ??????? ????? ?????????????: ??????? ??????? ?? ????? ??????????? ?? 2,9% ? 2,1% ??????.

Inflation forecast of the Bank of Canada has also been revised: it is expected that by mid- 2012 CPI will fall to 1% and in 2013 the indicator will amount 2%.

As it became known at the end of last week, CPI in Canada rose by 0.2% m/m (+3.2% y/y) against the forecast of growth by 0.1% m/m. At the same time base inflation showed growth of 0.5% m/m (+2.2% y/y) versus the forecast of growth by 0.2% m/m. At the moment the rise in inflation is within acceptable limits and is not harmful to economy. Leaders of the large Canadian companies indicate decline in inflationary expectations; it is predicted that in 2012 CPI will be in the range of 1-3%. Canadian companies are going to continue effective work in the future and increase volume of investments, creating new jobs, however not as fast as it was announced earlier. The country has lowered its forecast for sales in 2012; as a result local producers have to temper their personal forecasts. According to the estimates of the Bank of Canada, sentiment of the leaders of the large companies fell down compared with the summer period, since top management expects the decrease in the U.S. GDP and conservation of uncertainty in respect to global economic outlooks.

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