Will the USD react to better-than-expected jobs data?
USD: Today sees the release of the June ADP employment numbers, where a 600k increase is expected. Last month, a 978k increase did not prove a particularly accurate predictor for the NFP figure (+559k), but we suspect the market will be on edge over any strength in the US labour market which would encourage Fed hawkishness. After all, US money markets have barely given back any of the sharp adjustments made in the second half of June. US equities have actually out-performed over the last one and three months, suggesting some dollar selling could come through - yet these flows are notoriously hard to predict.
CAD: Canada sees the release of April growth figures today. Poor numbers may be overlooked by investors as activity was heavily impacted by Covid-19 restrictions. The fast vaccination roll-out in Canada has, since April, helped the economic picture improve and suggests the data flow may provide more support to CAD in the summer months.
EUR: Very strong Eurozone economic confidence readings have provided little support to EUR/USD so far. The missing link is a central bank ready to dial in dovishness - and there are no signs of that from the ECB so far. Yesterday's German inflation data and today's Eurozone June CPI data (expected to soften to 1.9% from 2.0%) are unlikely to change that position. Indeed, we suspect investors may take advantage of any EUR/USD dip to the 1.1835/1850 area to position for a higher EUR/USD in late Summer.
GBP: The sharp growth in UK house prices, now up 13% YoY seem to be supporting the very bullish pricing of the BoE cycle. The first 10bp hike is now priced for May 2022. Those expectations may be supported today in a speech at 13CET from outgoing hawk Andy Haldane. While the speech will focus on BoE communication over the last 30 years, he may also want to repeat his call that the BoE's QE programme be curtailed in August. This would leave the Asset Purchase Facility at £825 versus a current year-end target of £875bn.
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.