CAD: Canadian Dollar almost stands still for already the second day

At the Forex currency market the Canadian Dollar rate continues to almost stand still awaiting new signals even though oil prices continue to rise.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD; however it is moving along the signal line not giving a clear signal. Stochastic Oscillator has come out of the oversold zone today and is giving a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9550 the pair will go to 0.9565 and 0.9575. if upward breakdown does not take place the pair will continue to consolidate close to the existing levels.

The situation in Canada remains unchanged.
Earlier, Imperial Bank of Commerce reported on the revision of its GDP forecast for QIV 2010 to 2.6% versus the previous level of 2.3% and the Bank expects that this year economic growth will be by 2.6% (2.4 % earlier).

The Bank of Canada stated earlier that CPI in the country will begin to rise, as soon as it exceeds expected level. At the same time value of key index of net CPI is also growing, remaining close to the target level of 2%.

 The regulator expects that average growth of GDP will be at the level of 2.9% per annum this year.
According to the experts from International Monetary Fund, Canadian economy will grow by 2.3% y/y this year, which is less than the forecast of +2.7% y/y in October.

It became known earlier that retail sales in Canada increased by 0.4% in February against the fall by 0.4% in January. In addition, index of leading indicators in Canada increased by 0.8% in March against 0.8% m/m earlier and wholesales sale fell by 0.6% in February against 1.5% m/m in January.

In regards to the Canadian Dollar rate, IMF believes that if average oil price will remain at about $90 barrels (in October- $79 barrels) CAD will increase, with the help of support from the commodity sector of the country’s economy. 

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