The trade weighted dollar has bounced around 1% off its lows this week. The move looks corrective and a big driver of that has been the two cent sell-off in EUR/USD. Following today’s sourced article in the FT, it now seems clear that the strong Euro has firmly landed on the ECB’s radar. This suggests we’ll see a period of FX consolidation ahead of next week’s ECB meeting. However, news that a major trading partner of the US is having to deal with a stronger currency should not prove too much of a challenge to the over-riding dollar bear trend. After all, one of the side-effects of the weaker dollar is to export loose Fed policy around the world – effectively providing more global monetary stimulus.
Economists expect a material deterioration in the goods trade balance in July and pencil in a –C$4.7bn balance from –C$3.2bn in June. Massive increases again on the autos trade side should drive overall trade flows higher and be the main source of the deterioration in the balance. Higher oil prices in the month will provide some offset, but the magnitude of broader flows should overwhelm the impact. The services trade balance has improved greatly during the pandemic on lower travel services (where Canada usually runs a deficit), though June did see some deterioration to a balance of –C$0.7bn. Technically, initial resistance comes in at 1.3064, followed by 1.3105, while support stands at 1.3029 and 1.2952.
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.