CAD: Canadian Dollar has reached three -year highs once again

The Canadian Dollar rate is growing steadily at the Forex currency market amid positive dynamics of the capital markets and also due to the resumed consolidation of raw materials.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and goes down due to high volume of transactions, giving a pair sell signal. Stochastic Oscillator is approaching oversold zone today, giving a similar signal. 

Forex recommendations: in case of breakdown at the level of 0.9520 the targets will be the lows of Wednesday at 0.9495, and then 0.9470.

It became known yesterday that the index of leading indicators in Canada increased by 0.8% in March against 0.8% m/m earlier, 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.

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, going above expected level. At the same time value of key index of net CPI is also growing, remaining close to the target level of 2% so far.

Regulator assumes that annual GDP growth in Canada will be at the level of 2.9% 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.

At the same time, IMF expects economic growth by 2.7% in Canada in 2012.

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