CAD: Canadian Dollar has not chosen movement direction at the end of the week

At the Forex currency market the Canadian Dollar rate stands still on Friday, determining movement direction.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD, moving along the signal line, therefore, not giving a clear signal. Stochastic Oscillator is giving a pair buy signal on Friday, approaching overbought zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9985 the pair will go to 1.0000 and 1.0030. If the level of 0.9965 is exceeded, traders’ target will become the levels of 0.9920 and 0.9900.

It became known yesterday that index of leading indicators in Canada fell by 3.3% in December, prompting players to close out positions in CAD.
In addition, it also became known that index of wholesale reserves in Canada increased by 0.4% m/m in November; index of wholesale sales rose by 1.2% m/m. 

We would remind that at the meeting of Bank of Canada this week, 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.

The follow-up comments of the regulator have been predictable. The head of the Bank Mr. Carney noted that high rate of the CAD is holding back exports in the country, although the levels of net export will be maintained amid demand for raw materials. In addition, the Bank of Canada said that the fact of tightening of the monetary policy in the developing countries will affect the price movement; and that self-recovery of the world economy progresses slightly faster than than it had been predicted although risks also increase. As for the inflation levels, regulator expects that level of core and general indices of consumer prices will be below 2% level by the end of 1012.

In general, position of the Canadian Dollar at Forex is stable at the moment, taking into account high oil prices and stability of the Canadian economy.

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