CAD: Canadian Dollar still remains in the narrow range

At the Forex currency market the Canadian Dollar rate continues to go up slightly at the Forex currency market on Monday; although it has been in the narrow range for the fourth consecutive session.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and it continues to go down, confirming a previous sell signal for the pair. Stochastic oscillator is giving a similar signal today, being in the neutral zone.

Forex recommendations: if bearish sentiments for the pair intensify and in case of breakdown at the level of 1.0080 the pair USD/CAD will go to 1.0020 and 0.9980.

As it became known earlier trade surplus in Canada reduced to the lows of 18 years in October and amounted to - C$1.7 billion against -$2.3 billion in September

At the same time exports increased by 3.1% to $33.8 billion in October, while imports rose by 1.2%, to $35.5 billion.

It is interesting that exports to the USA rose by 0.4%; while the U.S. imports to Canada rose by 1.7% in October. Due to this, the Canadian trade surplus in the USA has reduced to +$1.1 billion which has  become the next lows.

Interest rate in Canada is at the level of 1% per annum. The last increase took place in September this year was by +25 basis points. 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.

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.

 

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