CAD: Canadian Dollar continues to consolidate

The Canadian Dollar rate continues to demonstrate steady growth for the third consecutive session at the Forex currency market, approaching local highs once again.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and started to go down again, giving a pair sell signal. Stochastic Oscillator has gone to the oversold zone today, confirming a pair sell signal.

Forex recommendations: taking into account external background and sentiments at the market sales for the pair can be continued with traders’ potential targets at the levels of 0.9800 and 0.9760.

Representatives of the Ministry of Finance announced at the end of January that creation of new jobs should be continued in the country; however after the recession period Canada looks more powerful than any other country of Big Seven.

It became known earlier levels of export in the country increased by 9.7% and imports- by 0.7% in December. In addition, trade surplus in Canada amounted to 3.0 billion CAD in December.

The meeting of Bank of Canada was held in January where the regulator decided to keep interest rate unchanged, at the level of 1%. Given the non-uniform statistical data on the nearest neighboring country, the USA, a step is perfectly logical.

According to the experts from the International Monetary Fund, Canadian economy will grow by 2.3% y/y in the current year; this was a downgrade compared with the forecast of October (+2.7% y/y).

At the same time IMF expects that in 2012 Canadian economy will increase by 2.7%. The exact figures of the GDP growth in the country will be published on 28 February but meanwhile IMF supposes that the indicator will be at the level of 2.9% (earlier – 3%).

As for the exchange rate of the Canadian Dollar in the current year, IMF believes that if average prices for the oil will be maintained at about 90 dollars for the barrel (in October- $79 per barrel), the CAD will consolidate with the help of fundamental support provided by the raw material economy of the country.

 

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