Over the last week, the CAD has gained roughly 1% against the USD, a performance that reflects the greenback's overall softer tone on the one hand and solid crude oil prices on the other. The CAD was more susceptible to external forces this last week due to a paucity of domestic data, but for the most part, these factors have worked in its favor. Weaker stock market trends helped to keep CAD gains in check towards the conclusion of the week. Next week, the spotlight shifts back to domestic drivers.
The Week Ahead:
The Bank of Canada's Business Outlook Survey isn't normally a huge mover in FX markets, but it could provide insight into what policymakers are thinking about (prices, wages) at next week's rate decision. In November, retail sales are predicted to increase by 1.2 percent, while the CPI is expected to rise to 4.8 percent. Domestic data suggests that the economy ended last year on a high note, and while Omicron will cause a steep slowdown in Q1, anticipate growth to rebound up quickly in Q2. Market pricing for the end-of-January Bank of Canada meeting is a teetering 14 basis points higher than last week, but still not indicating much confidence that policymakers will go ahead with a 25-basis point raise. The only thing stopping the BoC from increasing this month is Omicron, but once the latest round of limitations has been lifted, expect policy to tighten fast and aggressively this year. As a result, most analysts continue to expect the CAD to outperform in the next quarters.
USD/CAD Weekly Trading Range:
The fair market value estimate for the CAD settled around 1.2460 at the conclusion of last week, indicating a little undervaluation. With an anticipated ceiling of 1.2835, spot could see a bit more upside in the next week, as strong domestic data should support BoC predictions imminent rate hikes. This week’s trading range 1.2350 – 1.2650.
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.
FAQs
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.
Who can use the MTFX payment service?
