Canada’s economic performance was moderate in May 2012. Experts say this happened because of the industrial sector of the Canadian economy. Such a situation is expected to force the Bank of Canada into leaving the key interest rate unchanged over a certain period.
For reference, in May 2012, the Canadian economy grew 0.1% less than expected.
According to David Tulk, chief currency strategist at TD Securities, May’s recent economic slowdown in Canada may spread over June’s figures. If this is the case, the Bank of Canada will almost certainly leave the key interest rate unchanged. He says this may last till early 2013.
Forex.
According to , the Canadian Dollar keeps strengthening against the US Dollar. The experts report that USDCAD is forming wave С of level Н12-16 inside a major bearish move.
A further downswing will probably meet support around 0,9950 and 0,9875-9880. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1,0230 (as shown below).
