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The Powell Put | Canadian GDP Data

Published January 31, 2019
  • Federal Reserve Chair Powell indicated the bank has completed this round of interest rate hikes as US equities continue the most substantial January rally in decades. This sentiment spilled over into European markets this morning as major European indices prepare for the most considerable monthly gain in years. Interest rate futures are indicating low probabilities of future hikes being priced in for 2019.
  • The USDCAD pair is currently trading near three-month lows at 1.3130, as markets are eyeing an imminent breach of the 200-day moving average. The pair extended declines with selling pressure continuing amid broader weakness in the greenback from a very dovish Federal Reserve policy decision.
  • The release of Canadian GDP figures is set to be published this morning, with market participants expecting slightly weaker readings. Forecasts specify that the Canadian economy contracted by 0.1% during the reported month in contrast with a solid 0.3% growth recorded in the previous month.
  • President Trump will meet China’s Vice Premier Liu He today as the high-level trade negotiations come to an end will little signs that China will bend to American demands. Markets will look to concluding statements by the White House for progress on core subjects such as intellectual property rights.

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: www.ey.com/ca/encorefx.