SGM-FX insights

With Super Thursday upon us, considerable volatility lies ahead for Sterling, and for that matter global, currency markets. At midday today, the minutes from the meeting of the Bank of England’s monetary policy committee will be released. Only thirty minutes later, Dr Mark Carney, the Bank’s governor, will hold a press conference. Expectations for a […]

  As Sterling has hit a year-to-date low this week, the US Dollar has rallied and, in turn, trades at its highest value of 2018 so far. The market snapshot this morning shows a flat Pound Sterling along with a dampened Euro. Despite weak inflation data in the Eurozone being announced this morning, the single […]

  Following yesterday’s chronic bout of Sterling weakness, the Pound has opened weaker for the second consecutive day this week. Yesterday evening saw the heads of state of Commonwealth nations gather together at an event in London hosted by the UK Prime Minster Theresa May. As the market opens this morning, investors appear uncertain whether […]

As Brexit dominates the Pound, economics and monetary policy dominates the Dollar, and political scandal dominates the Rand, FX markets may start sounding like a broken record. However, one should remain very much aware that this repetition and almost paradigmatic taxonomy of certain currencies is more fragile than it may seem. Even the slightest amelioration […]

  The weekend did not arrive without a fight, particularly for the US Dollar. The labour market in the US, and economic impressions of it, had been argued to be the only potential saving grace of the ailing Dollar. The all-important payrolls report was published on Friday providing a detailed snapshot of the labour market […]

Yesterday, the US Dollar was the winner within the three major currencies. The Dollar appreciated against the Euro to drive the EURUSD rate down below 1.1920. Similarly, against the Pound, the Dollar threatened to break below 1.35; a move that was realised this morning. Despite a largely benign public reaction to Theresa May’s cabinet reshuffle, […]

Overview:   Towards the end of last week, the Dow Jones soared above $25,000.00, whilst the Dollar continued its decline. The two are unlikely to be mere coincidence as the weaker Dollar supports the activities of the outwardly orientated, international, blue-chip companies that populate the industrial index. In the UK, whilst the move has been […]

Discussion and Analysis by Charles Porter:   In a year that could see the further normalisation of developed economies’ monetary policies as well as the restoration of volatility and geo-political risk; fortune may well favour the brave. However, on this, the first trading day of the New Year, fortune also appears to favour Sterling, with […]

    The Pound initially recovered its post-Christmas losses this morning. Moreover, marginal volatility appears to have returned to foreign exchange markets. On the final trading day before 2018, the EUR-USD currency cross continues its impressive attempt to retest 1.20. The currency pair broke this level in September, and presently trades just 8 pips short […]

The forex market this morning has largely extended the trends that began yesterday: the US Dollar continues to shed considerable value; the Euro appears stronger against most of its G-10 counterparts; and the Pound’s performance is highly mixed. This morning, Italian Prime Minister Paolo Gentiloni accelerated the aggregated political risk surrounding the Euro. The Italian […]

Following Christmas, currency markets appear lethargic too. The low liquidity environment of the end of the year has seen most currencies stay within a very tight and unthreatening channel. Today, the biggest major mover of the day was the US Dollar. Today’s market movements seem rather reminiscent of the entire year: a mixed pound sterling, […]

Discussion and Analysis by Charles Porter:   Yesterday afternoon, the US Dollar only continued its unrelenting advance. Since the beginning of De­cember, the Dollar has gained almost 1.5% against its shared currency counterpart, the Euro. The EUR USD cross now threatens 1.17. The most notable event of today will be an interest rate decision by […]