SGM-FX insights

Luxury Goods   Good cheer for luxury brands with the release of Louis Vuitton results yesterday showing an increase of 18% in leather goods and fashion sales in Q4 2020. Tight cost control and some price increases have not blunted business which continues on line and demonstrates that if anyone wants to bet on this […]

Euro   Following yesterday’s ECB meeting confirming that European ultra easy monetary conditions will be maintained and with confirmation that there will be further stimulus measures to counteract the economic effects of Covid when necessary, the market was reassured and the EUR remained firm at USD 1.2150.   U.S. Employment   At a high level, […]

UK   UK Consumer Price Index up by 0.6% v expected 0.5%. GBP unmoved by that but inflation watchers monitoring closer for any signs of price moves outstripping forecasts.   U.S.Treasury Secretary Nominee: Janet Yellen   Yesterday’s address by Janet Yellen to the Senate Finance Committee was closely watched by markets yesterday and she did […]

US Federal Reserve   Next meeting for the Board of the Fed is on 26/27 January and following comments from members including the Boston Fed President, there is little expectation of any tightening in rates nor the reduction or removal of the bond buying program designed to inject stimulus into the US economy. Despite both […]

US Dollar   Still on an upward path at 1.2130 versus EUR, USD is strong on the effects of the expected $1.5 trillion Biden stimulus package. The yield on the US 10 year Treasury Bond has increased by 0.20% in the past month and now stands at 1.17%. US Equity markets on their highs.   […]

Governor   GBP has been on a winning streak this week, re-testing 32-month highs versus the US Dollar yesterday. The price level, around the 1.37 mark versus the US Dollar was ultimately rejected once again by markets and GBP sent backing. However, momentum behind the UK pound has not been stalled so much yet as […]

Commodities: the next frontier   Traditionally associated with oil production, Norway is not the location that immediately springs to mind when it comes to the announcement of the discovery and 2023 mining of substantial new reserves of cobalt, copper, zinc, gold and silver. Challengingly, these minerals are not only under the sea and 700kms offshore, […]

The Terminator   Yesterday Arnie Schwarzenegger(a Republican) issued a statement: “Mr President you are terminated.” Whether indeed the Democrats follow through with their promise to impeach Trump(again) and garner enough Republican votes to support that motion, political tensions in the USA remain high, but (so far) the world’s markets have remained calm despite that. As […]

EUR-USD   When the market is almost universally in accord and received wisdom on the USD is being spouted by taxi drivers(yes really, it happened to me only yesterday), it is time to question it. The 5 year high for EUR-USD was 1.2460 on February 3 2018 and on January 6 2021 it briefly went […]

Global Currencies   It was all about the USD again yesterday and once again on the downside: led by the People’s Bank of China which set a new high by setting the official fix for the onshore Renminbi Yuan of a midpoint of 6.4760, the offshore market reached 6.4419-a big move and the biggest for […]

Janus   As classicists among our readers will recall, Janus was the Roman mythological god of the entrance and so January is therefore named for being the doorway into the new year. A long winded way of saying Happy New Year from all of us at SGM-FX! Here’s wishing all of our clients a healthy, […]

Currencies   Following the US moving forward with the long awaited Covid relief package and at a much enhanced $2000 per head, the USD suffered and stood at its 2 ½ year low with EUR and GBP both benefitting. The CFTC reflected bets against the USD was at a 3 month high of $26.6 Billion […]