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. EUR, GBP, USD & CAD Forecast.

All Focus Will Be On The US And Canadian Employment Reports

USD - US Dollar

The hawkish tone set by the Bank of England and the ECB yesterday has created a downward trend on the U.S. dollar. Additionally, a major slump in US equities driven by yet another drop in US tech stocks seemed to go unnoticed in the FX market amid major central bank announcements.   

All focus will be on the US jobs report for the month of January. ADP payrolls numbers fell into negative territory earlier this week, which has led consensus expectations to a rather unexciting +40k read. This suggests that a USD-negative reaction may only be triggered by a headline number below zero.  The pricing on Fed tightening (five hikes in 2022) appears to be one of the few among G10 central banks that is not overly hawkish, and we doubt that today’s grim jobs report will be enough to derail the plans of the inflation focused FOMC. 

CAD - Canadian Dollar

The Canadian dollar has mostly been a bystander in the latest market developments. Jobs numbers in Canada look unlikely to turn the tide for the loonie today as the tough Covid restrictions in January likely led to a drop in employment. Some silver linings could emerge if the job losses have been mostly among part-time workers, and if wage growth has remained somewhat resilient. While likely to keep CAD weak, it must be acknowledged that the Bank of Canada was aware of the lockdown-induced slack in January when it signalled it would start hiking in March, and we doubt that today’s numbers will dent the prospect of six rate hikes by the end of 2022, which is currently what markets are pricing in. USD/CAD should remain within the 1.26-1.27 range in the near term, but we expect the BoC tightening to offer some support to CAD in the remainder of the year. 

EUR - Euro

An unchanged monetary policy statement yesterday was followed by a press conference that instead took a hawkish turn. While President Lagarde’s comments stressing the upside risks to inflation were not surprising considering the latest CPI reads in the eurozone, it was the ambiguity around the timing of the first hike that triggered the aggressively market reaction that ultimately led to another big move higher in EUR/USD.  Most see a material risk that the ECB will accelerate the unwinding of purchases and start hiking rates in 4Q22.  Markets are building expectations around a shift in the ECB stance which should provide a solid floor to the EUR in the run-up to a pivotal 10 March meeting. The EUR/USD should trade within the 1.13-1.15 range in this period. 

GBP - British Pound

The Bank of England hiked interest rates by 25bp yesterday, starting the reduction of its balance sheet, in line with expectations. More crucially, four out of nine MPC members voted for a 50bp increase, which sent a strong signal of endorsement to the market’s pricing for five more rate hikes this year.  Most analysts now expect rates to rise again in March and May. While market pricing on tightening appears a bit too hawkish, this may not be challenged until later in the year, which should leave the pound very well supported. Domestically, we see no downside risks for the pound from a potential departure of Prime Minister Boris Johnson. A continuation of the soft dollar environment today could see GBP/USD test the 1.3750 January highs. 

 

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.