CAD: Canadian Dollar remains strong

At the Forex currency market the Canadian Dollar rate remains close to the high levels on Friday amid the rise in the oil prices and general positive situation at the global capital markets, which was observed yesterday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and goes down although volumes of sales are high, and gives a pair sell signal. Stochastic Oscillator has come into oversold zone today, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.9510 the pair will go to 0.9490 and 0.9475. If downward breakdown does not take place for the pair, considering low activity in the market today, the USD/CAD will consolidate close to the current levels.

It became known yesterday that retail sales in Canada increased by 0.4% in February against the fall by 0.4% in January. In addition, index of leading indicators in Canada increased by 0.8% in March against 0.8% m/m earlier and 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.

 

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