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.

USD likely to remain strong into the year end

USD - US Dollar

It’s been a pivotal week for global markets, and while trading volumes are set to drop into the Christmas break, global central banks have provided investors with an important toolkit to position for what lies ahead in 2022. Central bank messages this week have all focused on inflation and discussions around tapering.

In FX, the greenback has weakened against all G10 currencies since Wednesday. It appears that markets are partly relieved the Fed did not signal an even faster tapering. While this explains the short-term underperformance of the dollar, it can equally serve as a bullish-USD argument for the longer run, as it signals more room for Fed rate expectations to turn more hawkish – both on the tapering side (i.e. pricing in an earlier end of purchases) and on the tightening side (i.e. a hike already in 1Q22).

For today, markets will mostly re-assess weekly developments amid a very quiet US calendar. The risks are skewed towards the dollar recovering some ground as post-FOMC losses look exaggerated given fundamentals.

CAD - Canadian Dollar

The loonie did see some further strength after the FoMC meeting, and this was indeed the case last night with the CAD extending its overnight move. Most expect that Macklem comments will gradually move toward commentary on rate hikes which will force the CAD to finally show some signs of strength. USD/CAD resistance seems to be ranging around 1.2810/20 with the pair likely to trade on broad market sentiment and Omicron-related headlines.

EUR - Euro

The ECB’s announcement and press release confirmed that the transition to action will be considerably more gradual at the ECB compared to the Fed and Bank of England. President Lagarde seems to have successfully conveyed the message that the ECB will continue to tolerate higher prices in 2022 without any tightening or significant acceleration in tapering. Put together, the ECB won’t close the gap with the Fed in the foreseeable future, which should keep a lid on EUR/USD in the new year.

Today, the German Ifo for November is the main highlight in the eurozone, giving a chance for markets to assess how far business sentiment has deteriorated amid tough restrictions and lingering supply strains. EUR/USD may edge back below 1.1300 before the Christmas holiday period depresses volatility.

GBP - British Pound

The Bank of England surprised markets and consensus expectations by delivering a 15bp rate hike yesterday. From an FX perspective, this is a welcome development for the pound, as the BoE clearly sent the message that members are ready to act to curb inflation. For now, virus developments (and in particular whether the UK government will impose new strict restrictions) are set to remain the primary GBP drivers.

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.