CAD: Canadian Dollar continues to consolidate on Friday

At the Forex currency market The Canadian Dollar rate continues to grow on Friday even despite thin market and absence of the majority of active traders.  

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and is going up, giving grounds for a pair buy signal. Stochastic Oscillator is giving a pair sell signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex:in case of breakdown at the level of 1.0096 the pair will go to 1.0115 and 1.0150. If the level of 1.0050 will be exceeded, traders’ targets will be the levels of 1.0040 and 1.0025.

Macro-economic situation in Canada remains unchanged today.

Interest rate in Canada is at the level of 1% per annum. The last increase which took place in September this year was by +25 basis points. There is an opinion at the market now that the Bank of Canada will not change the interest rate until QII next year as economic recovery rate 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.
Statistics released earlier turned out to be mixed:

Level of retail sales, excluding cars, rose by 0.9%, to the level of $28.5 billion in October; therefore, the indicator has been increasing for the fifth month in a row.  Sale of gasoline still remains the main catalyst for the growth.

In addition, core consumer price index in Canada remained unchanged in November, following the growth by 0.4% in October; at the same time growth on annual basis has declined to 1.4% against the previous level of 1.8%.

Therefore, inflation demonstrated minimal increase last month for over then 2 years. It became an indication for the Bank of Canada that interest rates will remain unchanged for quite a long time.

It also became known on Thursday that GDP in Canada rose by 0.2% (+3.3% y/y) in October against the decline by 0.1% in September.
 
 
 

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