Reports that President Biden is Laying the Groundwork for a $3TN Infrastructure Package may Weigh on Treasury Bonds
USD: Yesterday was an interesting day in the markets with two specific events that helped the greenback find support - (i) the Turkish lira plunged 15% before recovering half of the initial loss by the end of the trading day and (ii) the UK-EU vaccine dispute which ended the day with a more conciliatory tone from both the EU and UK after the EU threatened to curb exports of vaccines to the UK. All said, the greenback was left without any safe haven support and instead followed US Treasury yields lower. There are no market-moving data releases on the US calendar today and the focus will likely be on Fedspeak. A number of Fed speakers, including Chair Jay Powell and Treasury Secretary Janet Yellen have scheduled speeches today. Markets will be watching for any signs of increasing nervousness about the bond sell-off, and the two-year US Treasury auction. It will also be worth monitoring any retaliation from China after the US, EU, Canada and the UK imposed sanctions on Chinese individuals and one entity, citing human right violations.
CAD: The CAD weakened overnight with the pair losing about 80bps and is currently trading at 1.2580. Watch for possible BoC pushback against rates moves and CAD strength. BoC’s Deputy Governor Gravelle speaks on the role of the BoC responding to market wide stress. With markets now pricing in the largest policy tightening in G10 in Canada over a 3y horizon (almost 150bp hikes), and USDCAD having slipped <1.25 in recent days (last seen in early 2018), the BoC could start to sound dovish, pushing back against CAD strength, especially considering their forward guidance is to keep rates on hold until their inflation target is sustainably achieved which they don’t foresee until 2023. It’s a very light data week for Canada. The only calendar risk of note is tomorrow’s speech from BoC DG Gravelle who will address the role of the BoC in responding to market-wide stress.
EUR: Some dollar weakness supported EUR/USD yesterday, but the currency looks vulnerable on the back of virus-related developments. The EU-UK vaccine dispute may be heading towards a resolution, but Germany announced an extension of Covid restrictions till mid-April yesterday and a five-day circuit-breaker lockdown around Easter, all of which is set to cause a revision in market hopes around any eurozone rebound in 2Q21.
GBP: Three Bank of England officials (Governor Andrew Bailey, Deputy Governor Jon Cunliff and Chief Economist Andy Haldane) will speak today, but there should be limited risk of any surprising policy remarks considering the proximity to the latest rate announcement. Better than expected January unemployment (5.0%) figures this morning had no impact on sterling, which still appears in better shape than the euro.
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.
Please read the following update before logging in to your MTFX online account
We have updated our online dealing system to provide you with better functionality, more unique tools and an overall enhanced client experience. MTFX Online 2.0 is now available for your dealing needs. You can begin using our enhanced online portal today.
Please note that the traditional portal will be available for use until MAY 30th 2021 at which point it will be decommissioned.