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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

BOC Expected to Hold Rates | Parliament Prepared to Amend Brexit Plan B

Published December 5, 2018
  • The Bank of Canada is generally expected to hold interest rates today as they continue to strike the appropriate balance on the path towards neutral. However, markets will be paying close attention to Alberta’s planned oil production cuts that could affect the central bank’s route forward. The production slowdown is likely to put a major dent in Canada’s GDP forecasts for 2019.
  • Prime Minister May was forced to publish the secret legal advice provided to her Cabinet on the Brexit deal to Parliament. The legal brief details controversial terms made with the European Union regarding the backstop, of which would keep Britain tied to EU rules if no solution to the Irish border issue is found. Parliament voted in favour of permitting amendments to any Brexit deal “plan B”, assuming the initial vote is defeated next week.
  • China has started to deliver on the trade obligations detailed in the G-20 truce with the US over the weekend. Chinese officials have taken essential steps for purchasing soybeans and liquefied natural gas. Despite the positive signs this evokes, it is unclear whether these provisions will lead to Chinese officials dropping the retaliatory tariffs it imposed on these products previously.