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Trump Strikes Again | Canadian GDP Shines

Published May 31, 2019
  • The Canadian economy expanded at an annualized rate of just 0.4% in the first quarter, slightly worse than expected, although monthly growth in March grew by 0.5% from February on widespread improvement across both the goods and service producing sectors. The Canadian dollar is trading a tad weaker at 1.3541, up 0.35 percent on the day against the greenback.
  • US President Donald Trump has announced a new 5 percent tariff on all imported goods from Mexico unless the country’s leaders do more to stop illegal migrants entering America. The Mexican peso fell sharply after the announcement and hit two-month lows against the greenback.
  • Bank of Canada Senior Deputy Governor Carolyn Wilkins reiterated the central banks view that the slowdown in late 2018 and early 2019 was temporary. However, global trade risks have increased and the current accommodation provided by the BoC remains appropriate.
  • Fed Vice Chair Richard Clarida said the US economy is in a good place and the level of interest rates are appropriate. However, he also mentioned that the central bank would act if inflation stays too low or global and financial risks endanger the economic outlook.

 

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.