Sticky Registration Sticky Customer Support

Daily Currency Update

Get access to our expert daily market analysis and discover and track your currency pair using our exchange rate tools.

The Duration of the USD Rebound Proved Limited

USD: As has been the case in prior months, the duration of the USD rebound proved rather limited and we currently observe renewed across-the-board USD weakness. While expectations of US growth outperformance vs the eurozone may put a question mark over the bearish USD story, as long as the Fed sticks to its Average Inflation Targeting framework, allows for the CPI overshot and keeps rates on hold (our base case for this year and next), the deeply negate real rate will weigh on USD. On the US data front, we expect December headline CPI to stay at 1.2% year-on-year today but more meaningful acceleration is expected from the second quarter onwards.

CAD: Rising crude oil prices are helping lift the CAD (oil sands supply disruptions have also halted—and reversed somewhat). The CAD’s modest out-performance is pressuring EURCAD which has served a firm-ish support in the past couple of months and we are not persuaded that the CAD can continue to push broadly higher, given the mixed market signals noted above. Absent any major domestic data releases, external drivers remain more influential for the CAD at this point.

EUR: In Italy, the recent news flow suggests that the junior coalition partner led by former Prime Minister Matteo Renzi is set to leave the government, with the resignation letters of his ministers possibly coming this afternoon. Heightened political uncertainty here has had little impact on the euro in recent days, and we estimate no risk premium has been built in (EUR/USD is trading around its short term fair value, based on our estimates).

GBP: Sterling got a boost from Bank of England Governor Andrew Bailey's comments that downplayed the odds of negative rates. This is in line with our view that the BoE is unlikely to cut rates into negative territory (due to the issue of bank profitability as well as the expected economic recovery from 2Q21 onwards) and coupled with faster vaccination in the UK than in the EU. We look for more pronounced GBP upside vs USD as the cross will benefit from the rising EUR/USD – we forecast GBP/USD 1.48 by end 2021.

Currency Chart

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.

Daily Currency Updates
Daily Market Analysis
Get daily intelligence and currency reports directly to your inbox.
Weekly FX Technical Analysis
Weekly Technical Analysis
Get our weekly technical analysis providing valuable insights.
Monthly Currency Outlook
Monthly Currency Outlook
Receive our monthly currency report and help improve your forecasts.

By entering your email address you agree to the MTFX Terms Of Use and MTFX Privacy Policy and agree and agree to receive sales and marketing communications. Unsubscribe at anytime.

FAQs

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.
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.
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.
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.