SGM-FX insights

Discussion and Analysis by Charles Porter:   This afternoon, the culmination of the Catalonian independence vote may arrive. We analyse the implications within currency markets, predominantly the Euro. In doing so, we offer you an insight into the likely performance of the Euro when it is potentially confronted by a declaration for Catalonian secession later […]

Discussion and Analysis by Charles Porter:   The week to date has seen a reversal of some incumbent forex market trends. Whereas the tripartite combination of Dollar weakness, Sterling (post-Brexit relative) strength and Euro strength seemed entrenched a few weeks ago, new dynamics are prevailing. Particularly, the Dollar has regained considerable value against the Euro […]

Discussion and Analysis by Grace Gliksten:   In the UK overnight trading session, a further blow to the Australian Dollar was dealt by the retail market, further highlighting the importance of the decision by the Reserve Bank of Australia, RBA, to hold interest rates at 1.50 percent. Philip Lowe, governor of the RBA, claimed the […]

Discussion and Analysis by Grace Gliksten:   For the fourteenth month in a row, the Reserve Bank of Australia, RBA, has left the Cash Rate on hold at 1.50%; a trend that seems unlikely to change in the coming months, due steadfast adherence to a neutral bias. Unsurprisingly, the Australian Dollar reacted negatively. Surprisingly, the […]

Discussion and Analysis by Charles Porter:   Hawkish monetary policy rhetoric has enveloped financial markets, and particularly currency markets, over the past couple of weeks. High volatility has prevailed, even within the most developed currencies. The Bank of Canada was the exclusive major developed economy to have ‘walked the walk’, and raise interest rates earlier […]

Discussion and Analysis by Charles Porter:   Hawkish monetary policy rhetoric has enveloped financial markets, and particularly currency markets, over the past couple of weeks. High volatility has prevailed, even within the most developed currencies. The Bank of Canada was the exclusive major developed economy to have ‘walked the walk’, and raise interest rates earlier […]

Discussion and Analysis by Charles Porter:   This morning, Switzerland’s National Bank (SNB) issued a press release detailing their latest monetary policy assessment. Their report detailed that the SNB is “maintaining its expansionary monetary policy”. Because the Bank had previously adopted negative exchange rates, this has interesting implications for macroeconomic thought as well as the […]

Discussion and Analysis by Charles Porter: Canadian interest rate policy changed following the Bank’s last policy decision in July. A movement of 25 basis points to 0.75% continued to encourage the trend of a strengthening of the Canadian Dollar vis-à-vis most international currencies. However, on the back of strong GDP results at the end of […]

Analysis and Discussion by Charles Porter:   Two statistics have been released by the Swiss Federal Statistics Office this morning. Meanwhile the Franc weakened. In order to analyse this effect, we consider the Swiss Franc (CHF) against key international currencies and its safe-haven partner, the Japanese Yen.   The Swiss Franc has received heightened attention in […]

Discussion and Analysis by Charles Porter:   “ Conditions in the global economy are continuing to improve”, although, the degree to which the domestic Australian economy is feeling any of this improvement is less certain.   A reserved statement introducing the Monetary Policy Decision was released by Philip Lowe, Governor of the Reserve Bank of Australia. […]