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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

CAD: Canadian Dollar is corrected after drawdown earlier

At the Forex currency market the Canadian Dollar rate is rising as part of technical correction after the fall that has lasted for the four sessions.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD, however it goes up, giving grounds to a pair buy signal. Stochastic oscillator is in the overbought area today and is forming an antipodal signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0165 the pair will go to 1.0175 and 1.0200. In case of breakdown at the level of 1.0130, traders’ targets will be the levels of 1.0100 and 1.0096.

The following Canadian statistics was released yesterday which, in general, turned out to be ambiguous:
Level of retail sales, excluding cars, rose by 0.9%, to the level of $28.5 billion in October; therefore, the indicator has been increasing for the fifth month in a row.  Sale of gasoline still remains the main catalyst for the growth.

In addition, the core consumer price index in Canada remained unchanged in Canada in November, following the growth by 0.4% in October; at the same time growth on annual basis has declined to 1.4% against the previous level of 1.8%.

Therefore, inflation demonstrated minimal increase last month for over then 2 years. It became an indication for the Bank of Canada that interest rates will remain unchanged for quite a long time.

Interest rate in Canada is at the level of 1% per annum. The last increase which took place in September this year was by +25 basis points. There is an opinion at the market now that the Bank of Canada will not change the interest rate until QII next year as economic recovery rate has slowed down in the country. The rate was increased 3 times in a row this year and at the last meeting of 19 October the regulator decided not to change it again.
 

 
 

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