The dollar is holding onto recent gains with the main focus in FX markets today being the central bank actions of the likes of Turkey, South Africa and Hungary. Washington is trying to coordinate a release of strategic oil reserves with China, Japan and a few other Asian nations but most don’t think that this will impact current price levels.
There are a few Fed speakers today and we'll also see whether US jobless claims continue to fall. Further declines can feed the narrative that the US could hit full employment (3.8% unemployment rate?) sooner than the Fed expects and prompt earlier Fed tightening. We continue to expect short-term USD strength.
CAD - Canadian Dollar
Yesterday’s Inflation print failed to provide the ‘smoking gun’ that the market was looking for and USD/CAD closed the session higher, well above the 1.26 level. While the CPI number was a disappointment, the headline number is still on an upward trajectory, reaching the highest level since 2003 and still way above the BoC’s 1-3% target. Yesterday’s print continues to suggest that an earlier move from the BoC is likely. The markets now look to retail sales on Friday as the next focal point.
EUR - Euro
EUR/USD continues to trade on the soft side and has not pulled away from the 1.1300 level. Not helping has been news of record Covid case numbers in Germany, which could dent the recovery in the services sector just as the manufacturing sector is struggling with supply chain disruption. Most analysts are bearish EUR/USD into the end of 2022 as greenback strength continues to dominate.
GBP - British Pound
GBP is holding onto gains after the combination of strong jobs data and high CPI cements views of a 15bp hike BoE hike on 16 December. The UK calendar is quiet today. Tomorrow should be more interesting with retail sales. In the short term, the GBP/USD may trader in a broad 1.34-1.36 range.
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.