SGM-FX insights

US Dollar   Yesterday saw the USD at a weaker level but not markedly so, on the back of Christine Lagarde, President of the European Central Bank making comments after the ECB monthly meeting. The market interpreted Mme Lagarde’s comments as insufficiently doveish- in other words because it was hardwired into the EU and the […]

GBP   Versus the low yielding currencies such as the EUR and Yen, GBP is at a 20 month high which is offering value to GBP sellers versus those currencies. Whether GBP goes higher from here is less certain as there is a suggestion that there is a lack of oxygen at these levels with […]

Batteries   Admittedly not a product that SGM-FX would normally cover, but one that is very much moving to the centre of our market radar screen. Thanks to a series of key patents, China dominates the production of iron based batteries making 95% of the world’s Lithium Iron Phosphate(LFP) batteries. Those patents expire soon and […]

Russian Railways   As a result of the snarl ups in Chinese ports that have already been well reported, Chinese exporters are turning their attention to rail transit for their goods. Normally time and cost would preclude such a move, but both have gone out of the window with shipping containers in the wrong places, […]

Ready, set, go!   You may have heard recently about the German traffic light. It’s not a strangely themed party, it’s not a strawberry, mango and pistachio ice cream cone, nor is it even an automotive signal. Rather, it represents one of the possible coalition outcomes following the election in Germany last month. The red […]

UK Inflation   At over 4%, the warning lights have been flashing for a few weeks now. Bank of England  Governor Andrew Bailey has been saying that such a level of inflation in the UK is temporary. Respected Panmure Gordon analyst, Simon French wrote the same over the weekend. However, it looks likely that following […]

US Supply Chain   As highlighted last week, 40% of all US imports go through the Port of Los Angeles in California. More pictures of the freight ships queuing. It emerges somewhat surprisingly that it is only now that the port is contemplating opening at night and over the weekends! It seems extraordinary in today’s […]

Get Used To It   That was what Kraft Heinz CEO Miguel Patricio advised his customers when asked about how they should deal with higher food prices. As regular readers will know, commodity basics such as corn, coffee, palm oil, sugar and soya beans have all been rising in price and are at a 10 […]

Common Prosperity   The Communist Party’s recently announced commitment to equalising wealth and dividing it more evenly within China now further clarifies the recent actions taken against some very high profile and wealthy business leaders. It also has implications for foreign investors in China as it is apparent, if it was not already, that China […]

A Dangerous Man?   That is how Elizabeth Warren described Jay Powell when he was testifying last week. Powell was estimated to have a 90% chance of being re-nominated as Chair of the Federal Reserve before last week but that has now fallen to 60% as Elizabeth Warren has said she will oppose it. The […]

UK House Prices   The 5 fastest rising areas in the UK property market are rural and coastal and are: Inverclyde, Conwy, Vale of Glamorgan, Hastings and North Devon which have averaged 24% in the past year. At the other end of the scale the fallers are all in London and are Lewisham, Westminster, Newham, […]

Bailey’s Bombshell   As the currency with one of (if not the) most sensitive risk profiles in the G10 currency space, the fall in GBP in recent sessions has been particularly severe. The shift in sentiment is highly visible against a rising US Dollar, with the Pound having suffered as markets are increasingly concerned about […]