CAD: Canadian Dollar took a break

At the Forex currency market the Canadian Dollar rate continued to decline until today, when USD/CAD “bulls” have taken a time out.

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and goes upward, maintaining a pair buy signal.  Stochastic Oscillator is growing in the overbought zone, giving a similar signal.

Forex recommendations: when “bulls” will be back at the market, the target for the growth will be the level of 0.9750, and further 0.9770. If upward breakdown does not take place, the pair will consolidate close to the current levels.

The head of the Bank of Canada noted yesterday that most countries of the Eurozone comply with the requirements prescribed by the G20; only the USA ignores them in large extent. At the same time, the size of the American deficit continues to be the matter of concern.

With respect to the Euro, Carney said that he is convinced that IMF should continue to implement the tasks aimed at resolving European crisis.

It became known earlier that trade balance surplus in Canada rose to $627 billion in March against the level of $356 billion in February. In addition, exports increased by 3.5% in March; imports by 2.8%. Canadian economy declined unexpectedly in February: GDP fell by 0.2% in February against the growth by 0.5% in January. It was largely caused by the reduction in the industrial output.

As it became public earlier 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.

Imperial Bank of Commerce reported earlier on the revision of its GDP forecast for QIV 2010 to 2.6% versus the previous level of 2.3%; the Bank expects that this year economic growth will be by 2.6% (2.4 % previously).

The Bank of Canada stated earlier that CPI in the country will begin to rise, as soon as it exceeds expected level. At the same time value of key index of net CPI is also growing, remaining close to the target level of 2%.

 

 

 
 

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