SGM-FX insights

Soothsayer   In the last few weeks there has been a prominent voice siding with more radical interpretations of the status and path that the global economy is on. Claiming the beginning of the Dollar’s debasement, it is the voice of Goldman Sachs that now brings the market a stark warning about government debt and […]

Mexico   Like other countries with huge diaspora working overseas such as the Philippines, the amount of remittances or funds from those workers that are sent home each month is keenly watched in Mexico City. Despite evidence that suggests that casual workers have seen their earnings crater in most countries during LockDown, for Mexico at […]

How low can you go?   With Euro-Dollar at two year highs, the rapid sell-off in the Dollar is in question. The trade weighted Dollar index is flashing oversold suggesting the broad-based USD sell off that has been underway since June could be running out of steam. A direct counter party to many fx trades […]

GBP: the Pound Between the Scylla of a weak USD and the Charybdis of a strong EUR   Last week GBP finished a whisker short of USD 1.28 and notched up its best week for some time versus USD. Against the EUR however it was a different story. EUR strong at EUR/USD 1.1650 which meant […]

Nifty   The Nifty Index has lived up to its name: the Nifty (Fifty) comprises 50 of the largest Indian stocks on the National Stock Exchange and fleet of foot investors who bought on March 24 this year will be congratulating themselves today on a 43% rise in their fortunes with the Nifty Fifty now […]

Russia   This is how it works in a pandemic affected Russia under President Putin: he simply instructed his officials yesterday to “fully restore the labour market” and stated his displeasure that 3 million or 6.3% of Russians were unemployed. USD/Ruble at 71.22.     Saudi Arabia   Spare a thought for the citizens of […]

Hats off, Masks on   In March this year, the pandemic unmasked the fragility of European risk sharing (pardon the pun). Not only did the Union not have adequate risk sharing procedures in place on the fiscal and monetary front but it also felt like every man for himself. Cross border state aid and the […]

What’s safer than a Swiss Bank?   The answer turns out to be a Swiss rock vault carved out of a mountain. Bruega Mega Safe are offering clients ready to spring a minimum of $500,000 for a space in the vault that will be the size of 10 football pitches and will house gold, art, […]

Another Round?   As ‘Super Saturday’ subsided into crapulent Sunday, the UK’s hospitality industry received a welcome boost. Opening their doors for the first time in more than 100 days, pubs, restaurants, hairdressers and more welcomed customers back (from 1+ metres away). Of those of you that did frequent the pub or eat out in […]

Central Bank Economic Optimism   The Bank of England has now been joined by the Banque de France with the assertion that the French economy too is performing more strongly than expected and is pulling out of the economic trough more quickly than anticipated. The markets are totting up the increase in savings as more […]

USA   POTUS understandably given his current polling, lost no time in hailing the increase of 4.8 Million jobs in June announced yesterday afternoon as a further example of why he should be returned in November as the architect of bringing the USA out of the Covid lockdown and resultant economic trough. As seasoned market […]

H2 2020 Starts Here!   Last night at the end of Q2 and H1 Gold inched over the $1800 line on Comex- the highest it has reached since 2011 which was the highest it has achieved in the past 20 years. Oil WTI up at $39. 10 year German Bonds yield -47bp or you will […]