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.

Could The Cad’s Slide Continue?

Could The Cad’s Slide Continue?

  • The CAD fell sharply in response to the Bank of Canada's 100 basis point rate hike, which we had not anticipated. While market pricing was leaning towards a more aggressive move, swaps were clearly not pricing in a full one percentage point increase. A number of factors contribute to the CAD's underperformance. First, markets are concerned that aggressive rate hikes will cause a sharp economic slowdown, despite the BOC's assurances that a soft landing is still possible; the housing and consumer sectors are obvious areas of concern for investors. Second, the rate hike came after the release of higher-than-expected US CPI data, which fueled speculation that the Fed would also opt for the 100-basis-point hike at the end of the month. 

Could the Canadian economy be in for a hard landing?

  • We disagree with the hard landing scenario for Canada. Slower growth is very likely—indeed, it is required for the BoC to gain price control—but there is some cushioning against a more adverse outcome; savings and the fact that rising mortgage costs will affect only a relatively small proportion of households. Nonetheless, the CAD's performance has been underwhelming. While equity market uncertainty remains high, the CAD will struggle to recover significantly; given the challenges for stocks—geopolitical risks, rising inflation/interest rates, slowing growth, and weaker earnings—volatility may remain high for some time, and the CAD rebound we expected in H2 is unlikely to materialize. Our overall outlook remains consistent with a slightly stronger CAD over the next few months, and we believe that the worst may be over for the CAD in the short run following last week's swings.

The week ahead:

  • The start of this week's data calendar is more focused on lower-tier data for Canada—consumer confidence and housing today—than on top-tier data such as CPI (Wednesday) and Retail Sales (Friday). The Bank of Canada did a good job of explaining why it thought higher rates posed no major threat to the housing market, but the Canadian economy's shift toward real estate will focus investor attention more intently on the consumer and housing sectors in the coming weeks and months. There will be a slew of construction and housing data in the US next week, but there will also be some new survey data to digest—the Philly Fed survey on Thursday and the manufacturing, services, and composite PMI data on Friday. 

This week’s trading range: 12850 – 1.3250

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.