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 unlikely to rock markets…expect a non-event

USD: Investors' focus has been primarily on China over the first half of the week and on the sharp drop in Chinese equities which has created a shockwave that has hit most global risk assets. Asian sessions are seeing stocks still under pressure today, as we continue to see the negative impact of Beijing’s regulatory crackdown. The Fed rate announcement will be the highlight of the day. Most market analysts expect the meeting to be a non-event where it is widely expected that the FOMC maintains the status quo. After all, Chair Powell has recently reiterated his view that inflation spikes have a transitory nature, and do not warrant any imminent change in the Fed’s policy mix. From an FX perspective, the impact on the dollar from today’s announcement will be contained, with a balance of risks that appear tilted to the upside as the acknowledgment of above-trend inflation and growth should allow markets to keep speculating of a more hawkish turn in Jackson Hole, and on a 2022 rate hike.

CAD: USD/CAD had a rather uneventful week, although hopefully, today will be better. CPI is released today, which will be closely watched, especially as the BoC, similar to the Fed, believe that the recent rise is temporary. The recent global growth concerns due to Covid haven’t really affected the loonie and with the BoC maintaining its hawkish stance at the last meeting, a number above expectations has the ability to see a larger move to the downside. The Fed meeting today is likely to be a non-event but an inflation print above forecast should see the market start to re-price a slightly more hawkish outlook, which should see CAD outperform. Today’s trading range remains within a 1.2420/40 1.2650/60 range.

EUR: EUR/USD has continued to gravitate around the 1.1800 level, still looking unable to make a decisive move as the dollar remains protected from falling US real rates thanks to its safe-haven status and the euro appears to be lacking clear catalysts at the moment. Yesterday, comments by ECB’s De Cos fell firmly on the dovish side, suggesting the ECB should maintain some flexibility on the shape of its QE program even after the pandemic. Today, there are no data releases worth mentioning in the eurozone, and some positive impact on the dollar after the rate announcement may send EUR/USD back to the lower region of its recent trading range.

GBP: Sterling is the best performing G10 currency so far this week, as it detached from global risk dynamics and may have been buoyed by a slowdown in UK Covid-19 cases, which is raising hopes that the government’s decision to lift almost all restrictions may prove to be a sustainable approach. GBP is heading into next week’s Bank of England meeting with a balanced positioning, which may be allowing some hawkish speculation to emerge.

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.