The dollar started the week on a strong footing, thanks to a combination of geopolitical events triggering risk aversion and rising speculation on a 50bp Federal Reserve rate hike in March.
On the first theme – geopolitics – markets will follow very closely today’s meeting between German Chancellor Scholz and Russian President Putin, largely seen as one last chance for the West to mediate a diplomatic solution. There is a considerable amount of risk for G20 currencies, and in particular, the European ones, should tensions escalate further. Oil’s rally can offer some shield to loonie for the short term.
On the second theme – Fed rate expectations – today’s FOMC minutes from the January meeting will shed some light on how much consensus there was about imminent rate hikes. Yesterday, James Bullard reiterated he’s backing aggressive tightening before the summer.
CAD - Canadian Dollar
The CAD is underperforming but holding up relatively well against its commodity peers as markets continue to remain concerned about rising tensions in Ukraine. Firm energy prices provide some offset to elevated volatility and weaker stocks but the CAD is clearly at some risk of trading more in line with the weaker risk tone in the short run. On the domestic front, the Ambassador Bridge blockade has re-opened while the domestic data calendar picks up this week with Wednesday’s release of Retail Sales and CPI data. BoC DG lane also speaks Wednesday.
EUR - Euro
EUR/USD seems to have found a floor at 1.1300, which is a level that prices in some geopolitical risk but still benefits from bets around European Central Bank tightening this summer. Unless the Ukrainian situation deteriorates, a decisive break below 1.1300 likely requires some re-pricing of ECB rate expectations. Today, we’ll hear from ECB member François Villeroy, while the data calendar includes the German ZEW index and the second read of eurozone 4Q GDP.
GBP - British Pound
The pound has shown some resilience despite USD appreciation, with GBP finding support at 1.3500. The positive narrative of imminent Bank of England tightening is limiting the downside for the pound despite the adverse risk environment. This morning’s jobs data for January continued to reinforce tightening prospects, as the jobless rate held at 4.1% while average weekly earnings accelerated in December.
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.