Tatiana Dementieva
The report of Statistics Canada has shown that profit of Canadian companies keeps falling according to the results of the first quarter. Power industry and financial sector have provided major reasons for the decline.
According to the results of the first quarter, profit earned by Canadian corporations has amounted to 73.1 bln. dollars. It has dropped by 4.6% in comparison to the previous quarter. Energy companies (profit dropped by 2.8 bln. dollars) and companies of the financial sector (1.7 bln. dollars) have become leaders by the decline of profit. Company, representing other sectors of Canadian economy have generally shown weak growth, which could not lead to increase of the total profit. Out of 22 branches of the industrial sector, 11 have shown decline of profit.
Reduction of profit in non-financial sector has speeded up the decline, observed in the fourth quarter. According to the report, profit of non-financial sector has amounted to 50.7 bln. dollars, which is 3.5% less than during the previous quarter. Specialists of Masterforex-V Academy have noted a 3.5% reduction of profit made by non-financial companies during the fourth quarter.
Negative dynamics of profit made by companies of the financial sector seems more dramatic. Decline of operation profit has amounted to 7.1% or 22.4 bln. dollars.
Meanwhile, USD/CAD is forming correction to long-term trend for strengthening. On May 27, 2016 the currency pair finished a “bearish” wave of Н4 level, as stated by experts of Masterforex-V Trading System . Breaking the maximum of 1.3186 will show the beginning of A/B upwave of not less than Daily level. Resistance is provided by Fibonacci levels 1.3310, 1.3358, and 1.3464. Once USD/CAD pair breaks the minimum of 1.2909, it will start a “bearish” wave A/B with Daily potential. Closest support is provided by pivot MF 1.2835 and Fibonacci levels 1.2738/37 and 1.2632/31.
Tatiana Dementieva
