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Markets Eye Canadian Inflation Numbers | US Dollar Rebounds After Strong Data

Published December 18, 2019

  • Canadian CPI numbers were released at 8:30 am EST, and markets got exactly what they were expecting, a modest month-on-month decline in the Core CPI index, and the year-on-year numbers to hold steady at 1.9%.  This index excludes volatile items such as fruits, vegetables, and gasoline, and is a key indicator used by the Bank of Canada to gauge inflation.  The Canadian dollar, which has stalled slightly after an impressive start to December, is unchanged after the news.  Next up for the loonie is Retail Sales on Friday, where a surprise CPI reading in either direction could dictate its direction heading into the Christmas break.
  • After slumping to a five-month low last Thursday, the US dollar has been climbing back higher after this week’s manufacturing, housing, and service sector numbers showed signs of resilience in the US economy.  The data has helped lower the probabilities of a Fed interest rate cut in 2020, and the market may continue to further lower the odds if Friday’s GDP and inflation numbers come in strong.
  • US Trade Representative Robert Lighthizer is wasting no time in turning his attention from China to Europe and said that the US may raise tariffs on European goods.  The comments didn’t do any favours for the euro this morning, which has already been hurt by the stronger dollar.  It is unclear when or if the tariff hike would be implemented, but another trade war isn’t going to be greeted with open arms by the EU,  whose economy has already been hit hard by global trade tensions.

To the Clients of EncoreFX:


It is with much regret that we inform you that EncoreFX’s (the “Company”) offices are suspending trading effective immediately.

This suspension will give the Company time to consider its restructuring alternatives. The restructuring has become necessary as a number of customers to whom the Company granted credit have defaulted on their obligations to the Company due mainly, we believe, to the rapid changes in the FX market caused by the coronavirus pandemic.


In order to provide stakeholders with transparency, the Company has filed an assignment in bankruptcy pursuant to Section 49(1) of the Bankruptcy and Insolvency Act (Canada) (the “BIA”) with respect to its Canadian operations and has assigned its Australian and New Zealand subsidiaries in Voluntary Administration in Australia and New Zealand. 


Ernst & Young has been appointed as the licensed insolvency trustee (the “Trustee”) in Canada and as the Administrator in Australia. 


Once the Trustee, working with the Company, has determined the best options for the Company and its stakeholders it will share that information with you. Information pertaining to the bankruptcy of EncoreFX will be available, in due course, on the Trustee’s website at: