Investors continue to remain defensive as the spread of the Delta variant and restrictions being re-imposed in some countries are pairing with lingering concerns about the impact of China’s regulatory crackdown and geopolitical instability in the Middle East. Such an unstable risk environment naturally supports the dollar, and some mixed US data for July only appeared to add to the bullish sentiment on the greenback. Today, the minutes from the 28 July FOMC meeting could support the bullish sentiment on USD. A special focus will also be on any discussion about the timeline for unwinding QE, especially after some members voiced their expectations for tapering to start already this fall. Any confirmation on this side should cement the view that the Fed will unveil more details of its tapering plan at the 26-28 August Jackson Hole symposium, and ultimately offer yet another supportive narrative for the dollar.
CAD - Canadian Dollar
The USD/CAD continues to maintain the 1.26 handle amidst the broad USD rally and feels a little perplexing. The CAD is under-performing amid weakness in high beta FX generally and weaker oil prices specifically. Crude oil is down again and is on its weakest run since March. WTI has dropped some 13.5% plus over the past month, which is hard for the CAD to ignore. Still, no real bias in the loonie here and 1.2590/00 should remain pivotal today ahead of Canadian CPI and Fed Minutes later.
EUR - Euro
The euro likely missed the last chance to be rescued by domestic data this week as yesterday’s decent growth data were largely ignored by the market. Before the 23 August PMIs, there are no clear data drivers in the eurozone, and the dollar’s strength could continue to put pressure on EUR/USD. The 1.1700 level is starting to look fragile and the next key level to watch could be the 1.1600 November 2020 low.
GBP - British Pound
After good jobs data failed to help the pound yesterday, this morning’s below-expectation CPI numbers failed to send the pound much lower. The volatility in inflation numbers in the near term is likely to set to have limited implications for the Bank of England’s policy stance, with policymakers that are mostly focused on price growth dynamics in 2022 to time the unwinding of monetary policy. There are no other data releases in the UK today, and any chance for GBP to turn lower again will likely rely on a material improvement in the global risk sentiment.
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.