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At the Forex currency market the Canadian Dollar rate istraded upward on Wednesday, making use of growing oil prices and positive investors' sentiments at the global capital markets.

Forex forecast: MACD indicator for the pair USD/CAD is going up in the positive area and maintains a buy signal, volumes are small. Stochastic Oscillator is going down in the neutral zone giving a sell signal.

Forex recommendations: in case of breakdown at the level of 1.025, the pair will go to 1.0240 and 1.2000. 

It became known yesterday that CPI in Canada increased by 0.1% m/m(+2.9% y/y) which agreed with forecast. Expectations have been justified.Growth is in the permissible range and risks for economy are not expected from this side.

Unemployment rate in Canada increased by 0.1% in November, up to7.4%, while the number of employees reduced by 18 thousand. Moreover, share oflabour force decreased by 0.1%, to 66.6% last month. GDP in Canada rose by 3.5%y/y in Q3 against the revised decline of 0.5% in April-June.

Economists predicted growth of 3%. The Bank of Canada believes that country's GDP 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 demandin the U.S. impedes progress in the index and expensive CAD also offers achallenge. The rise in the interest rate in Canada will directly depend onstability in economic growth.

It became known in December that the regulator left interest rate unchanged at the level of 1% per annum. The news did not become a surprise forthe players, as investors had assumed that interest rate would be kept at thecurrent levels for a least another 12 months. In the follow-up comments theBank of Canada said that the impact of recession in the global economy can beprojected onto the Canadian economic system and that through the fault ofEurozone conditions at the global financial platforms have deterioratedsharply. 

The head of the Bank of Canada Mr. Carney said commenting on the last week's EU summit that he did not have any illusions in regards ofthe efficiency of the measures proposed by European Union. Apparently monetarypolitician thinks that actions of the EU are insufficient in the current situation.

Earlier Carney noted that Canadian enterprises and companies shall become the mover of economic growth in the country and it would be better forthe house holds to reduce the level of debts.

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