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At the Forex currency market the Canadian Dollar rate makes attempts to recover in the middle of the week after two-days of significant sales.

Forex forecast: MACD indicator for the pair USD/CAD is going down in the positive area and almost merged with the signal line, giving a sell signal. Stochastic Oscillator is in the overbought zone, continuing to grow and is giving a buy signal.

Forex recommendations: in case of breakdown at the level of 1.0340, the pair will go to 1.0350 and 1.0360. As part of the technical correction the pair can go to 1.0285.

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 of the efficiency of the measures proposed by European Union. Apparently monetary politician 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 for the households to reduce the level of debts.

According to observers from Standard & Poor's, economy of Canada is in the favourable position now, since exports grow, despite strengthening of the CAD and consumer spending remains at the high levels.

Unemployment rate in Canada increased by 0.1% in November, up to 7.4%, while the number of employees reduced by 18 thousand. Moreover, share of labour 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 demand in the U.S. impedes progress in 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.

It became known yesterday that the Canadian regulator left interest rate unchanged at the level of 1% per annum. The news did not become a surprise for the players, as investors had assumed that interest rate would be kept at the current levels for a least another 12 months.

In the follow-up comments the Bank of Canada said that the impact of recession in the global economy can be projected onto the Canadian economic system and that through the fault of Eurozone conditions at the global financial platforms have deteriorated sharply.

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