SGM-FX insights

EURUSD lifeline? Contrary to where market consensus would have read EURUSD at the start of the year, the currency pair has failed to find support as it grinds ever lower. The recent peak of 1.12 was short lived and largely macroeconomic factors have swiftly and confidently forced the Euro-Dollar currency pair to retreat. The causality […]

Currencies With the USD enjoying its 8th straight week of gains which is its best run for 9 years, it is worth looking at the other end of the scale: the CNY or Chinese Yuan has sunk to its low of 2007 at 7.3430. Good news for the Canadian Dollar on the back of 30,000 […]

German Manufacturing Sector Until recently the powerhouse of both Germany and Europe, the manufacturing sector has suffered a difficult year with falling orders, lower output and high prices. Now the July production figures have been released and at a worse than expected fall of 0.8% they have done nothing to cheer the sector. EUR/USD 1.0700. […]

Speakers Many FX crosses observed volatility yesterday based upon the words of decision makers at scheduled speeches. Words from policy makers at the Bank of England and the European Central Bank in particular caused significant shifts in spot prices and liquidity conditions within major pairs including EURGBP, GBPUSD and EURUSD. Whilst the words offered to […]

US Dollar A positive day for the USD yesterday with the greenback reaching EUR/USD 1.0735 and GBP/USD 1.2559 on global economic growth jitters. For the first time for some months the words “safe haven” were used in conjunction with the US Dollar. Sager observers have always regarded the USD as the global reserve currency par […]

Buoyant vessels If loose lips sink ships, then the monetary policy institutions of the European Central Bank, Bank of England and Federal Reserve should be firmly afloat. Despite the President of the ECB speaking yesterday in London, there are still very few clues available about what lies in store for the European monetary authority’s September […]

September Squalls? It is not the intention to make you choke over your breakfast or when ever you are reading this, but the statisticians have been out over the weekend to see if there is any truth to the supposition that September is traditionally a tricky if not a poor month for the US equity […]

Eurozone Inflation Unchanged at 5.3% Eurozone inflation having been expected to dip towards 5.1% in August disappointed. This was mainly due to higher than expected energy prices. Despite this evidence of stubborn Eurozone inflation, the majority market expectation remains for a hike in October or November but not in September. GBP/EUR 1.1675. US Interest Rates […]

Scaremongering? Before unpacking the title of this daily briefing, a quick update on this data heavy week. So far, the slew of economic data from the Eurozone has by and large confirmed the theme of moderating inflation across members of the currency union. No significant surprises across the numerous data types released means the Euro […]

Jackson Hole As the world’s top economic policy makers gathered last weekend to pow wow in the Wyoming ski and leisure resort, they must have been or rather should have been struck by the gulf that separates the haves and have nots in that microcosm of America. Teton County, which is where JH is located, […]

Data returns A relatively data light week still managed to create some surprises within markets. Due to developments in the macro economy, we have highlighted how investors are more data-reliant than ever. This has been largely down to the potential for change at central banks with the outlook for future rate adjustments still being portrayed […]

US Consumer Spending Despite 525 basis points of cumulative rises in just over 18 months by the Federal Reserve, the US consumer has carried on spending. Doubtless this will be on the minds of those policy makers gathered at Jackson Hole, Wyoming this weekend as they debate just when to stop the rate rises before […]