Sticky Registration Sticky Customer Support

Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools

Canadian dollar update – Thursday July 30, 2020. Dovish Fed stands pat; 2nd wave COVID-19 fears spook traders.

FX & market recap:

The Federal Open Market Committee (FOMC) meeting statement had a few tweaks that emphasised their dovish stance. They repeated that the ongoing public health crisis would weigh heavily on the economy and acknowledged concerns about the uptick in new cases. They said, “The path of the economy will depend significantly on the course of the virus.” And just in case people were concerned about interest rates moving higher, Mr. Powell said: “we are not even thinking about interest rates.”

The dovish result was expected, and the US dollar slid into the close. FX markets were steady in Asia, although oil prices and gold traded with a negative bias. WTI suffered from Wednesday’s EIA report that US crude inventories rose by 10.6 million barrels in the week ending July 24.

Traders may react negatively to US Q2 GDP falling 34.2%, as forecast. The economy is expected to have been trashed thanks to the pandemic but seeing the number may spook markets. US jobless claims are forecast at 1.45 million, higher than last week and evidence US growth is stumbling.

Canadian dollar highlights:

USD/CAD rallied alongside the drop in the antipodean currencies. The failure to extend losses below 1.3330 this weak, and a rise in negative risk sentiment, boosted prices. USD/CAD continues to be at the mercy of broad US dollar sentiment. Some analysts are suggesting that all the good news is already priced into the currency, leaving limited USD/CAD downside in the coming weeks.

Euro highlights:

EUR/USD traded softly in Asia and then accelerated lower in Europe. Prices dropped from 1.1792 to a low of 1.1732, after the report that Q2 German GDP fell 10.1% q/q. No one should have been surprised, which helps explain EUR/USD’s bounce to 1.1755 at the NY open. Euro-area data was weak but close enough to forecasts not to be a factor.

British pound highlights:

GBP/USD found a bottom at 1.2946 just before Europe opened, then climbed to 1.3010 following the German data. Sales of EUR/GBP fueled the rally. GBP/USD is holding those gains in early NY trading, awaiting the upcoming US data.

Asia Pacific highlights:

USD/JPY traded sideways for most of the Asia session then climbed to 105.28 from 104.92 just before Europe opened. The gains were not sustained. However, the technicals are still bearish, and a drop in US 10-year Treasury yields to 0.558% is weighing on prices.

Currency Chart

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.

Daily Currency Updates
Daily Market Analysis
Get daily intelligence and currency reports directly to your inbox.
Weekly FX Technical Analysis
Weekly Technical Analysis
Get our weekly technical analysis providing valuable insights.
Monthly Currency Outlook
Monthly Currency Outlook
Receive our monthly currency report and help improve your forecasts.

By entering your email address you agree to the MTFX Terms Of Use and MTFX Privacy Policy and agree and agree to receive sales and marketing communications. Unsubscribe at anytime.

FAQs

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.
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.
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.
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.