Canadian dollar update – Friday August 14, 2020. This weekend's US/China meeting could cause fireworks!
FX & market recap:
FX traders hoping to get direction from equity markets were disappointed. Asia stocks were uninspiring and directionless. European equity markets knew the path: it was down. S&P futures followed suit. Traders are unnerved by political tension in Belarus because of fears of a rigged election, and elevated anxieties between Turkey and Greece. Both countries are NATO members, but the European Union is supporting Greece.
Saturday’s US and China meeting between Trade Representative Robert Lighthizer and Vice Premier Liu He could spark fireworks. It is supposed to review the Phase 1 Trade deal, but recent US actions including the attempt to nationalize Tik Tok and WeChat, suggest discussions may be acrimonious.
US Retail Sales, Industrial Production, Capacity Utilization and Michigan Consumer Sentiment data will provide direction for equity markets and by default the US dollar. Traders will also be looking for developments on the US governments stimulus plan.
Canadian dollar highlights:
USD/CAD attempted to break support in the 1.3200 area yesterday. It failed. USD/CAD bears still have hope as the bounce was of the dead cat variety and stalled at 1.3252. Price action may get choppy in the 1.3250 area today as there are reportedly $1.5 billion in option contracts expiring at 10:00 am. The Canada June Manufacturing Data forecast is 16.4% m/m, which, if higher than expected, may undermine USD/CAD.
EUR/USD rallied in Asia, climbing from 1.1783 to 1.1826, before changing direction, and dropping to 1.1795 by the NY open. Eurozone Q2 GDP dropped 12.1% as expected, and employment fell 2.6% q/q. Ongoing issues in Belarus and elevated tensions from Turkey’s incursion into Greek territorial waters, limited EUR/USD gains.
British pound highlights:
GBP/USD is showing no signs of ill-effects from heightened quarantine rules in the country. The UK will enforce 14-day quarantine rules on travellers arriving from France, the Netherlands, Monaco, Malta, Turks and Caicos and Aruba. GBP/USD traded quietly in a 1.3250-82 range until NY opened. Prices extended gains to 1.3099 on the back of EUR/GBP selling.
Asia Pacific highlights:
USD/JPY continued to consolidate gains from earlier in the week in a 106.68-107.73 range. The currency pair is at the bottom of the band, in part because US Treasury yields have slipped from their peak.
Get access to our market experts and sign up to receive the latest updates on any currency with our real-time exchange rate reports.
Sign up to receive the latest market news from our experts.
Who can use the MTFX payment service?
Individuals and businesses who need to send money in foreign currency internationally can use MTFX’s services. The beneficiary of the transfer must have a bank account for the funds to be paid into.
Personal clients usually use our services to transfer money between their own accounts in two different countries.
Business clients usually use our services to transfer funds to suppliers, fund international operations, or repatriate overseas earnings.
Why should I use MTFX and not my own bank?
MTFX offers currency exchange rates that are 2-5% better than those offered by the banks. Personal clients usually save hundreds of dollars per transfer and for larger transfers, the savings can run into the thousands.
We also offer excellent customer service, dedicated currency specialists, and a 24/7 online platform with best-in-class technology that allows you to complete transfers from any device virtually anywhere in the world.
Business customers save with better currency exchange rates and proven solutions geared towards managing and mitigating foreign exchange risk. Our solutions include forward contracts, market orders, rate alert services, and much more - all backed by great technology and great people.
How do customers send funds to MTFX?
Funds can be transferred via wire transfer, Electronic Funds Transfer (EFT), or ACH payment services. MTFX maintains bank accounts in all major currencies with highly-rated banks. Our banking infrastructure ensures that you can transfer funds to us quickly and securely.
How long does it take MTFX to transfer funds?
Our global network of banking partners allows us to get funds to virtually anywhere in the world quickly and efficiently. Most wire transfers from MTFX will be received by your beneficiary within 24-48 hours. MTFX also offers same-day transfers that are almost instantaneous, as well as low-cost in-country payment services for your less urgent transfers. For further information please speak to one of our currency specialists.
MTFX is in the process of migrating our online dealing system to a newer version which offers more functionality along with an updated look and feel. While we complete our migration, both versions of our online dealing platform will be accessible.