CAD: Canadian Dollar remains in the offset channel

At the Forex currency market the Canadian Dollar rate has been in the offset for the last three days.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and is growing, giving a pair buy signal, however   volumes are decreasing which can indicate a potential reversal. Stochastic Oscillator is rising today in the neutral zone, giving a pair buy signal.
Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9830 the pair will go to 0.9850 and 0.9880. If the level of 0.9800 is exceeded, traders’ targets will become the levels of 0.9780 and 0.9750.

Canadian Prime Minister Mr. Harper said yesterday that it is not clear yet what will be the dynamics of the further recovery of the Canadian economy. In addition the politician stressed that the adoption of the new budget will be of great importance for the labor market and economy as a whole.

In accordance with the experts of the International Monetary Fund, Canadian economy will increase by 2.3% y/y this year, which became a step down against the October forecast of (+2.7% y/y).

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, meanwhile IMF supposes that the indicator will be at the level of 2.9% (earlier – 3%).

As for the rate of the Canadian Dollar this year, IMF assumes that if the average oil price will remain at about &90/barrel (in October- &79/barrel), CAD will consolidate, enjoying the fundamental support of the commodity economy of the country.   

Earlier, Imperial Bank of Commerce reported about revision of the GDP forecast for QIV 2010 from the previous 2.3% to 2.6%; the Bank expects economic growth by 2.6% this year (2.4 % previously). 

 

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