USD: One of the biggest perceived risks to the 2021 recovery story playing out in financial markets is a disorderly rise in US yields. Thus, it has been surprising this week to see the large decline in US yields, despite above consensus US CPI and retail sales. The fact that US yields have appeared to enter a two-way market already does tend to soften the risk of a tantrum. Numerous economists are tempted to say that DXY made an important corrective high at 93.44 at the end of March – and is now heading for a retest of the year’s lows at 89.21. But we will need events in Europe (progress on vaccinations, EU Recovery Fund) to play their part in the global recovery story. Today, expect another strong US consumer sentiment reading and a focus on the 5-10 year inflation expectations survey. These expectations are already running at 2.8%. 91.50-92.00 may well be the DXY range today.
CAD: March housing starts data is expected to show that starts remained elevated at 250K annualised in March (cons. 255K) versus 245.9K in February. Continued strength in the home re-sale market and very elevated permit issuance of late suggest that they will stay firm in the near term. February wholesale sales are expected to decline 0.4%m/m after increasing 4.0% in the previous month. USD/CAD features support at 1.2502, with 1.2576 serving as resistance.
EUR: The Eurogroup of Eurozone finance ministers meet today and will be discussing progress on the EU Recovery Fund. Currently, this is stuck in the German constitutional court – with no indication when progress will materialize. Expectations are that grants from this fund will be released early in the third quarter, and any delay here will be ‘catastrophic’ – according to French officials. However, the good news is that the 7-day rolling average of vaccinations has inflected higher in Europe over the last ten days, while new case numbers are stabilizing. Calm in the US bond markets will encourage investors to position for the European late 2Q recovery, suggesting any EUR/$ pullbacks are limited to the 1.1880/1900 area.
GBP: Investors have been reluctant to jump back into GBP longs and some caution may be warranted ahead of the Scottish parliamentary elections on 6 May – where the appetite for independence will be assessed.
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.