CAD: Canadian Dollar is determined to regain from the previous fall

At the Forex currency market the Canadian Dollar rate increases steadily, using growing oil prices and positive external background as a support.
 

Forex forecast: MACD indicator is in the positive area for the pair USD/CAD, however it goes down, giving ground for a pair sell signal. Stochastic
Oscillator is giving a similar signal, being in the neutral zone.

Forex recommendations: if the current external background is maintained and in case of breakdown at the level of 1.0180 the pair will go to 1.0155 and 1.0110. There is an opinion at the market that the Bank of Canada will not change the interest rate until QII next year, as economic recovery rate slows 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.

Close proximity to the USA with QE2 is unlikely to bring positive factor to Canada. Therefore it is too early to say about the rate growth. It is possible that while policy of easing is conducted in America, Canadian rate will remain unchanged. The head of the Bank of Canada Mr. Carney noted earlier that economy needs regulation system reforms, as the risk of collapse of the financial institutions "which are too large to become bankrupt"' is still too high at the moment.

He also stressed that the banks themselves should comply with market discipline and currencies' rates should reflect the fundamentals. According
to Carney increasing tension at the currency market bears risks for Canada itself. Interest rate in Canada is at the level of 1% per annum. The last increase took place in September this year (+25 basis points).

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