US Inflation may provide support to the dollar | MTFX
USD: The week in FX has started along the lines of the past one, with the dollar marginally weaker against commodity currencies. US Treasuries also started the week weaker, however, the key test for bonds is due today, as the release of US CPI numbers for the month of March is widely expected to show another jump in inflation. Consensus forecasts suggest headline inflation to rise 0.5% month-on-month and 2.4% year-on-year. Such figures should further fuel the narrative that the US economy is starting to overheat and will likely add to concerns that the Federal Reserve's firmly dovish message will be increasingly challenged. Meanwhile, the US Treasury's FX Report should be published on Thursday and may tag Taiwan as a manipulator – but not China – and possibly raise the threshold for the three criteria to receive the manipulator tag, according to some media reports.
CAD: The loonie weakened marginally this morning and is trading in the low 1.26 levels to start the North American session. Ranges are limited and the CAD tone has likely soured somewhat with the slippage in stocks. However, Friday’s stellar jobs data should not be far from investors’ minds and while most expect some of the jump in jobs to be unwound this month as a result of Ontario’s lockdown. That said, the trend in jobs and progress on access to vaccines should provide policy makers with enough confidence in the outlook to at least signal a move towards tapering asset purchases at the April 21st policy decision.
EUR: The US inflation report is set to be the main driver for the EUR/USD today and may cause the pair to test last week’s 1.1860 lows. A usually important data point in the eurozone – the German ZEW – should have limited impact today as a positive re-rating of the eurozone recovery outlook appears almost solely reliant on material advancements on the vaccination rollout in the EU and the unlocking of the EU Recovery Fund.
GBP: We were not at all surprised to see sterling's rebound yesterday after last week’s correction: the storm that hit the AstraZeneca vaccine has not derailed the UK vaccination plans, leaving prospects of a sharp recovery in the country intact. Also, GBP/USD appeared meaningfully undervalued at the end of last week. Most expect the pound to show relatively good resilience to any USD rally today.
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.