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

USD: Just a short-term correction

The rout in equity markets and the sharp sell-off in tech stocks yesterday reversed some of the past gains in pro-cyclical currencies and temporarily helped USD, yet the FX market has already shown signs of stability overnight, with the USD rebound pausing. Some form of correction in stock markets does not come a surprise, following their multi month sharp rise as well as concerns about the lofty valuations, but given the Fed’s willingness to ease more (should it be necessary - with stock markets’ price action likely being a consideration) as well as the uninspiring USD outlook (where the Fed’s shift to average inflation targeting points to a prolonged period of low USD nominal and real rates), we don’t expect a long lasting negative spillover into FX markets. The negative USD remains intact and we look for a multi quarter bearish dollar trend, with the latest USD rebound being a short-term correction, rather than a start of the trend. Today, the focus is on the US labour market report. Our economists look for a below-consensus NFP and unchanged unemployment rate. With the current nervousness in the marketplace, softer US numbers may modestly weigh on risk and further help the dollar today.

CAD: Economists are forecasting a 250K employment gain in August, continuing the trend of sizable, but smaller gains as the recovery continues. Such a gain would still leave total employment 1.1mn below the February level and the hardest hit services sectors (e.g. food/accommodation) should remain well below pre‐ pandemic levels. Part‐time job gains rose almost 350K in July – well exceeding the full‐time increase of 73K – and expect some reversal of that composition this time around.

Thursday’s correction higher in USD/CAD opens up 1.3183 as the next resistance level to watch – a daily close above it is required to signal a bullish trend reversal. There is not much in the way of support until 1.3029, ahead of the psychological 1.3000 threshold and the 2019 low at 1.2952.

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.