Equity futures are in the green this morning, in line with a rebound in Asian equities overnight after a very rough week for risk sentiment. Some recovery in risk appetite today could help mitigate recent losses for G10 FX currencies and take some steam out of the dollar rally for now. Still, we’ll need to see a material stabilization in sentiment in the coming days to actually reverse some of the recent FX moves. The market’s concerns around the combination of Fed tightening and expected global slowdown continue, however, to argue in favour of volatility and instability in risk assets. Today’s main focus in the US is the University of Michigan survey for May, with the main sentiment gauge expected to have inched lower while the 1Y inflation expectations index may have increased marginally to 5.5%.
CAD - Canadian Dollar
Weak stocks and elevated volatility (VIX) continue to drive the CAD. The CAD has shown a degree of resilience, however, with new lows for stocks not being met with excessive pressure on the currency and this week’s range highs holding the USD’s advance. Most analysts continue to suggest a reversal for the CAD as recent weakness is purely a reflection of elevated market volatility and there is still a solid fundamental story underlying the CAD (growth, terms of trade, hawkish central bank).
EUR - Euro
EUR/USD broke the key 1.0500 support yesterday while uncertainty around the implications of the Ukraine war in Europe remains elevated. Text major support to watch is the 1.0340 January 2017 low. A break below such a level would make the risk of EUR/USD hitting parity quite material. A break below 1.0340 may not be a story for today as a rebound in risk assets may ease some of the dollar's momentum. The eurozone calendar includes industrial production figures for May, as well as a bunch of European Central Bank speakers. In this environment, another technical break lower in EUR/USD in the coming days is a very material risk.
GBP - British Pound
The pound is trying to find some support around the 1.2200 level after what has been a freefall from the upper half of the 1.20-1.30 range. Yesterday’s weaker-than-expected growth numbers in the UK seemed to feed the narrative that the Bank of England might soon reach a peak in its tightening cycle as the British economy materially slows down. The way ahead remains very uneven for the pound considering that markets still have a good deal of monetary tightening to price out. With Brexit-related risks back to the forefront and the downside risks for GBP remain quite significant and a move to 1.2000 next week may be on the cards.
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.