USD: While the FOMC minutes might have surprised with the tapering talk, the relatively limited reaction in the US Treasury market and also in the FX market suggests that (a) QE tapering later this year is the market’s base case; (b) a move towards policy normalization will be cautious. Comments from the Dallas Fed’s Kaplan yesterday afternoon about starting the tapering conversation "sooner rather than later" didn't give the recent dollar rebound legs. Overall, unless we see a meaningful shift towards more aggressive Fed tightening (here the talk of QE tapering in H2 is unlikely to suffice as this is widely expected) and the subsequent reversal in the USD front-end rates dynamics (currently most negative in the G10 FX space), the USD rebound episodes are likely to be should be short-lived, as we have seen this week.
CAD: The data flow has underpinned CAD’s good momentum this week, with April inflation rising above expectations to 3.4% and ultimately supporting hawkish expectations on the central bank. Yesterday’s comments by Governor Tiff Macklem did not denote any alarming tone on higher inflation, but also highlighted the concerns about surging house prices and referred to current rates as “unusually low”. Today, we'll see the release of March retail sales, which are widely expected to have risen at a slower pace compared to February but may not have significant market implications as the figures will be heavily impacted by Covid-19 restrictions. It seems the recent fast vaccine roll-out in the country is possibly making investors more tolerant of some not-so-good pieces of data. USD/CAD may test the critical 1.2000 support very soon.
EUR: The May Eurozone PMIs are expected to tick higher, reflecting the improving sentiment helped by the pick-up in the vaccination programme and the re-opening plans. With the recent dollar rebound fading, EUR/USD is set to test the 1.2250 level over the coming weeks.
GBP: The UK May PMIs are set to rise today, with the rising consumer and business confidence aided by the vaccination programme and re-opening. With the recent dollar rebound softening, this points to higher GBP/USD (back above 1.4200).
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.