Canadian dollar update – Thursday July 23, 2020. USD on life support?
FX & market recap:
The US dollar sell-off is relentless and threatening to accelerate lower. If US dollar index (USDX) support in the 94.25-60 area crumbles, the bears will have their way with the greenback. The US reported another 68,947 new COVID-19 cases yesterday, in contrast with the Euro area, where the coronavirus outbreak has been beaten into submission. President Trump’s ploy to deflect attention from his and his administration’s bungling of the pandemic management by increasing verbal attacks on China has not resulted in a flight into safe-haven US dollars, although the Euro may be benefiting.
Today’s Jobless Claims report may be worse than expected due to the resurgence of the coronavirus in many US states, forcing officials to shutter previously opened businesses. US equity markets are poised to open higher, as Tesla and Microsoft earnings keep the stock and risk rally alive.
Canadian dollar highlights:
USD/CAD dropped to 1.3373 before bouncing to 1.3390 in early NY trading. Broad US dollar selling against the major currencies and a tick higher in oil prices contributed selling pressure.
EUR/USD got within spitting distance of 1.1600 (1.1597) and then shied away, although prices may just be regrouping for another attempt. For some reason “big figures” give traders pause and this big figure represents the 50% Fibonacci retracement level of the 2018-2020 range (1.0653-1.2540). The downside may be limited due to ballooning US government deficits and coronavirus concerns.
British pound highlights:
GBP/USD traded in a 1.2700-1.2753 band and is trading at 1.2714 in NY. The currency pair underperformed against the Euro due to ongoing concerns that UK rates could drift into negative territory and on fears that the EU and UK trade talks will fail.
Asia Pacific highlights:
USD/JPY barely moved as Japan was closed for a holiday. AUD/USD is trading near the bottom of its overnight 0.7124-0.7160 range due to the release of Australia’s budget. Treasurer Josh Frydenberg announced a $281.4 billion deficit for 2019-2020 and 2020-2021.
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.