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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: Consolidation of Canadian Dollar continues on Tuesday

At the Forex currency market the Canadian Dollar rate continues the growth which has started earlier.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and continues to descend, confirming a previous sell signal for the pair. Stochastic oscillator is not giving a clear signal today being in the oversold zone.

Forex recommendations: if current bearish sentiment will maintain at the market and in case of breakdown at the level of 0.9840 traders’ targets will be the levels of 0.9810 and 0.9765.

Statistics on the employment rate in Canada released last week was a positive factor for the CAD. Thus, number of jobs increased for the third time in a row in December, by 22 thousand, following the growth by 15.2 thousand in November. At the same time unemployment rate remained at the previous level of 7.6% (forecast was 7.7%) in December which has become the lows since January 2009.

In general, the CAD seems the most stable among high-yielding currencies even taking into account its close proximity to the USA. Most likely the short term growth of the Canadian currency will be continued due to the steady state of the local economy.

There is an opinion at the market that the Bank of Canada will not change the interest rate until QII next year as the pace of economic recovery 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. Schedule of the Bank of Canada meetings for 2011 is as follows: 18 January, 1 March, 12 April, 31 may, 19 July, 7 September, 25 October, 6 December. Canadian Minister of Finance Mr. Flaherty stressed earlier that the rate would not remain low for ever. The rate is now at the level of 1% per annum; the last time the rate was changed upward by 25 basis points in September this year.

Note also that core index of consumer prices in Canada remained unchanged in November after the rise by 0.4% in October, the growth has slowed down to 1.4% on annual basis against the previous level of 1.8%.