SGM-FX insights

Japan Cherry Blossom   They take the Sakura or the cherry blossom festival seriously in Japan and records have been scrupulously maintained for the past 1200 years as to exactly the date that the blossom is declared to be in full bloom. Last year it was March 26 and this year it was April 1. […]

Australia: Insurance   A hot topic (no pun) for this weekend’s Federal Elections in Australia is of course climate change. With bushfires and floods having cost insurers dear in recent times, the projection is that by 2030 1 in 25 homes in Australia will be uninsurable. On average premiums have increased fourfold for property insurance […]

Auto Manufacturer Market Capitalisations   If like me you have recently enjoyed the Netflix documentary film Elon Musk-it does what it says on the tin-you may have wondered at how Tesla’s market cap compares to say 1. VW or, if one took a combination of 2. Mercedes-Benz, Ford, BMW and Honda how they in total […]

Not All That Ordinary   It’s not every day that a nation, let alone two, announces that it will be applying for NATO membership. But yesterday, when Sweden joined Finland in announcing its process towards membership of the defence body, the attention was elsewhere: Russia. Russia has seemingly struggled to make the advances it has […]

Beginning of the End?   Hopes rising over the weekend that the Stock Market correction is nearing the end. US 10 Year Bond at 2.92% , Gold $1,811 and EUR/USD 1.0422. Still offering value GBP/EUR 1.1720.   Saudi Aramco   Anyone unsure of the degree of uplift that the rising oil price post Ukraine has […]

UK Growth   GDP contracted by 0.1% in March in a quarter that saw growth grow by a slender 0.8% which was down from growth of 1.3% in Q4 2021 and below the forecast of 1%. GBP/USD dropped to 1.2166, its lowest for 2 years.   The most valuable company in the world   The […]

Blame the Data   Volatility has continued to stretch the foreign exchange market out of its usual ranges. In the case of GBP, the market is evidently heavily short Sterling but until yesterday lacked the optimism to close some of the open positioning or the conviction to drive speculative positions further. The precarious nature of […]

Markets   As we start the week with WTI oil at $110.60, the USD remains very strong at EUR/USD 1.0550 and GBP/USD 1.2280 and GBP/EUR 1.1680. Gold firmer at $1882.   US 10 Year Treasury Bond   Last week the yield reached 3.14% at the same times as the Dow lost 1000 points on Thursday. […]

UK Interest Rates   25bp increase versus the widely expected 50bp rise: a predictable market reaction: GBP smacked. Never mind that the BoE is once again saying they know best and that economic activity is fragile and cannot sustain a 50bp shot. Hopefully this turns out better than the Bank of England inflation is transitory […]

Australia   RBA raising interest rates from 0.10% to 0.35% may not sound like much, but it may be the final nail in the coffin that is incumbent PM Scott Morrison’s hope of re-election as he trails in the polls ahead of the National Election on May 21. In case you have lost sight of […]

Much-awaited May   Almost all central banks have now begun their policy normalisation cycle. The ultra-low yield group most notably including the Eurozone and Japan would have something to say and argue about this, but by and large respective central banks have either signposted their tightening cycle or the market has begun to do it […]

Starbucks   With more than 25,000 outlets worldwide in more than 70 countries, Starbucks has by any stretch of the imagination a thriving business. Have you noticed that when you pay for your coffee it is always a little bit more than the quoted tariff ? No neither had I until yesterday when I was […]