Sticky Registration Sticky Customer Support

Weekly Currency Update

Get access to our expert weekly market analysis and discover and track your currency pair using our exchange rate tools.

CAD Should Begin To Appreciate Against The USD

CAD Should Begin To Appreciate Against The USD

  • The volatility of last week's currency moves were highlighted across all FX markets. A week after a blockbuster US jobs report which appeared poised to keep the USD well-supported, the USD finds itself trading a bit more defensively following evidence that inflationary pressures in the US are weakening. The wider swings in the USD last week may have overstated the fresh information we learned from the US CPI and PPI data, but it could just be a summer phenomenon. Markets are still pricing a rate increase by the FOMC in September at a range of 50 bps to 75 bps.

The week ahead

  • Pricing interest rate hikes in Canada has a history of following the Fed funds.  Markets seem to be betting that this week's release of Canadian CPI data will reflect the US headline inflation rate and print lower than expected. Despite the move in swap rates, we do not believe that the risks of a 75bps hike in Canada have significantly decreased, even though the Fed may now be leaning toward a 50bps hike in September. Price pressures in Canada appear to be relatively sticky, and the Bank of Canada is running a clear campaign to explain its policy-tightening moves, even as Canadians are beginning to feel the pinch from tighter budgets. Last week, the Bank expressed its resolve to restore price stability in a brief Twitter thread. Beyond the CPI, Canada's higher-profile data releases this week includes Manufacturing Sales, IPPI, and Retail Sales. The August NY and Philly Fed survey results, housing, industrial production, and retail sales statistics, together with the July FOMC minutes, are among the US releases.

Could the CAD appreciate in Q4?

  • The CAD still trades a little "rich" in comparison to our basic fair value estimate, but we observe that the modelled outcome has significantly improved over the past week, and there is a growing association between the CAD and US stocks. The backdrop should support some short- to medium-term gains in the CAD if this is the trough for equities markets. Although we still expect the USD/CAD  exchange rate to be 1.27 at year's end, if the risk environment does really improve, risks may be shifting toward a little weaker USD and higher CAD.

This week’s trading range 1.2700 – 1.2950

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.