Fed triggered tapering yesterday; USD holding on to gains
USD - US Dollar
The Fed has managed to successfully announce tapering with barely a ripple in global asset markets. The Fed has fired the starting gun on policy normalization which should eventually lead to tighter dollar liquidity, higher US rates and a stronger dollar.
With tapering out of the way and six weeks until the next FOMC meetings, the focus will very much be on US data. The US calendar is quite ahead of jobs data tomorrow, but the dollar could today enjoy some modest gains against the oil exporters as Brent remains under pressure on this week's crude inventory builds, the restart of the Iran nuclear talks and the OPEC+ meeting later today.
CAD - Canadian Dollar
The loonie paid no attention to oil futures and tracked close to other commodity currencies overnight. There was some significant buying action in the mid 1.23’s yesterday post FOMC. Given the Fed has started tapering, most now see the USD/CAD trading in a tight range of 1.21 – 1.24. Look out for some volatility today as OPEC+ meets to discuss plans to increase daily output by 400K barrels/day.
EUR - Euro
The ECB is having some success in taking the steam out of 2022 tightening expectations and it looks as though the doves are regaining some control. There are a few ECB speakers today, but overall we would expect EUR/USD to remain quiet ahead of tomorrow's jobs data.
GBP - British Pound
It's BoE day. GBP has corrected a little this week already and most suspect that it may have a little further to go should it appear that Governor Bailey does not carry at least 8 of the nine-member MPC with him in voting for a 15bp rate hike. That said, a BoE hike well before the Fed does tee up GBP for further gains over the coming months as UK inflation pressures continue to build.
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.