CAD: Moderate growth of Canadian Dollar continues for the second consecutive day

The Canadian Dollar rate continues to rise at the Forex currency market; taken into account that major trading currencies were on sale yesterday, CAD looks very attractive considering its stability.  

Forex forecast: MACD indicator is in the negative area for the pair USD/CAD and is going down, confirming a previous sell signal for the pair. Stochastic Oscillator is giving a pair buy signal today, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9910 the pair will go to 0.9890 and 0.9875. Otherwise the pair will continue to consolidate close to the current levels.
The following Canadian statistics was released yesterday:
– Raw material prices in November: +3.5% m/m;
– Industrial prices in November:+0.5% m/m.
The data was positive as a whole, providing good support to the CAD.

Interest rate in Canada is at the level of 1% per annum. The last increase which took place in September this year was by +25 basis points. There is an opinion at the market now that the Bank of Canada will not change the interest rate until QII next year as economic recovery rate has slowed 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.
Schedule of the Bank of Canada meetings for 2011 is as follows: 18 January, 1 March, 12 April, 31 may, 19 July, 7 September, 25 October, 6 December.

Core index of consumer prices in Canada remained unchanged in November after the rise by 0.4% in October, the growth has slowed down to 1.4% on annual basis against the previous level of 1.8%.

 
 

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