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At the Forex currency market the Canadian Dollar rate is traded downward, due to investors’ aversion to risk and also under pressure of decline in oil prices.

Forex forecast: MACD indicator for the pair USD/CAD has broken through the signal line from bottom to top and is traded in the positive area, moving along the signal line, and not giving a clear signal. Stochastic Oscillator is going up in the neutral zone, giving a buy signal.

Forex recommendations: in case of breakdown at the level of 1.0265, the pair will go to 1.0280 and 1.0290. If upward breakdown does not take place, the pair will remain at the current levels.

As it became known earlier, shipment in the manufacturing sector of Canada increased by 2.6% in September    against the forecast of 1.3% m/m. However we should not make hasty conclusions about revival of industry in Canada as proximity of the U.S. still matters. According to information received earlier, Canadian companies are going to continue effective work in the future, by increasing volume of investments and creating new jobs; however not as fast as it had been announced earlier. The forecast for sales in 2012 has been lowered in the country; as a result, local producers had 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.

The Bank of Canada believes that GDP of the country will amount to 2.8% in 2011 (decline by 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 low demand in the U.S. impedes development of the index and expensive CAD also offers a challenge. The rise in the interest rate in Canada will directly depend on stability in economic growth.

Unemployment rate increased by 0.2% in October,  up to the level of 7.3% versus the level of 7.1% in September.  Full employment reduced by 71.7 thousand, part- time employment increased by   17.7 thousand. Overall rate of employment in Canada fell by 54 thousand last month against the growth of 60.9 thousand in September.  After the release of this statistics representative of the Bank of Canada Harper noted that employment statistics fully reflects low confidence both in Canada and in the world; however labour sector is very volatile. It is natural that developments in Eurozone affect economy of Canada. The head of the Bank of Canada Carney noted this week that Canadian banks can reduce volume of lending and direct efforts to buying European assets.

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