Sticky Registration Sticky Customer Support

Daily Currency Update

Get access to our expert daily market analysis and discover and track your currency pair using our exchange rate tools. EUR, GBP, USD & CAD Forecast.

Fed And Boc Likely To Raise Interest Rates 50bps

USD - US Dollar

The takeaway from the March Federal Open Market Committee (FOMC) minutes last night was that the Federal Reserve seemed confident enough about growth and the labour market, but that inflation needed to be addressed – and fast. It seems clear that the Fed would have opted to start the cycle with a 50bp hike were it not for the war in Ukraine. Some clarity was also provided on quantitative tightening – i.e. the speed at which the Fed will shrink its balance sheet. Based on the minutes and recent comments from Fed dove Lael Brainard it looks like the Fed will start shrinking its balance sheet after the May meeting, at a rate of $95bn per month. That's nearly twice as quick as was seen during the last balance sheet run down during the 2017-19 cycle. 

For today, we have a few Fed speakers including the very hawkish James Bullard. His views are well known and a lot of Fed tightening is already priced in. Yet we feel the dollar can play catch-up with most of the G10 FX. 

CAD - Canadian Dollar

The CAD has weakened further overnight after gains extended to the low 1.24 earlier this week. Crude oil has firmed as markets brace for more US/EU sanctions on Russia; EU officials said that the proposed ban on Russian coal could be followed by measures on oil and gas “sooner or later”. Market volatility has also dropped this week which is a headwind for the CAD.  While equity market volatility remains contained most continue to expect CAD positives—strong growth, elevated commodities and the expected 50bps tightening from the BoC next week—all likely to limit CAD losses. Observe the USD/CAD chart.

EUR - Euro

EUR/USD is consolidating under 1.10 as the market waits for the EU's next move on sanctions. Comments from President Mario Draghi overnight suggest a full EU embargo of Russian gas is still some way off. It seems only a full sanction of Russian energy will be enough to see the rouble coming under severe pressure. For today, we will get to see the release of the European Central Bank (ECB) minutes for March. ECB minutes are typically less exciting than the Fed's. Money markets currently price 55bp of ECB tightening by year-end and we doubt ECB minutes will have much of an impact here. Look out, though, for any mention of the euro. The ECB has recently been expressing a little concern with EUR/USD under 1.10 and what it means for imported energy prices. EUR/USD may have a quiet day near 1.0900/1.0950 trading range. 

GBP - British Pound

The challenge for GBP in the medium term will be if and when year-end market expectations for the Bank of England's (BoEs) bank rate adjust closer to 1.00/1.25% versus the 2%+ currently priced. That adjustment is probably a 2H22 story for sterling. For today, look out for a speech from BoE chief economist Huw Pill. Given high inflation that will go higher he may not want to issue a rate protest today (i.e. may not want to manage market expectations of the tightening cycle lower).

You can use Historical Currency Exchange Rates tool for observing past historical rates.

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.