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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 tends to be corrected after the previous fall

At the Forex currency market on Monday morning technical rebound is being observed for the Canadian Dollar, following a drastic fall at the end of last week.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and it is moving along the signal line, which prevents from forming a clear signal. Stochastic Oscillator is approaching overbought area today and is giving a pair sell signal.

Forex recommendations: if bearish sentiments for the pair USD/CAD intensify traders’ targets today will become the levels of   1.0100 and 1.0085.
The situation in Canada has not changed significantly.

Statistics released last week showed slight recovery of Canadian economy: number of new orders in industrial sector was +3.0 in November; level of stocks in industrial sector was +0.3% in October; deliveries in industrial sector in October: +1.7%.

As it also became known earlier trade surplus in Canada reduced to the lows of 18 years in October and amounted to - C$1.7 billion against -$2.3 billion in September. At the same time exports increased by 3.1% to $33.8 billion in October, while imports rose by 1.2%, to $35.5 billion.

Interest rate in Canada is at the level of 1% per annum. The last increase took place in September this year was by +25 basis points. There is an opinion at the market that the Bank of Canada will not change the interest rate until QII next year, as economic recovery rate slows 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.
The head of the Bank of Canada Mr. Carney noted earlier that economy needs regulation system reforms, as the risk of collapse of the financial institutions “which are too large to become bankrupt”’ is still too high at the moment.

He also stressed that the banks themselves should comply with market discipline and currencies rates should reflect the fundamentals. According to Carney increasing tension at the currency market bears risks for Canada itself.

Expectations of the U.S. GDP data for QIII, which will be released on Wednesday, 22 December, will put pressure on the CAD rate this week.

 

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