SGM-FX insights

Con-te Partiro   Towards the end of yesterday’s European close there was a correction in risk appetite that saw the US Dollar appreciate against the Euro and commodity currencies. The sharp move that was precipitated by little fundamental adjustments or news headlines highlights the still fragile sentiment in global markets, particularly within the Eurozone. As […]

Swan Song   With only two days to go until the European Summit, volatility is rising across GBP, EUR and even USD currency pairs as the financial world braces for the race to secure the European Recovery Fund and, in its fifth consecutive year of consideration, Brexit. In options markets, the implied volatility within cable […]

EURUSD   The world’s most significant and liquid currency pair continues to trend higher. Despite uncertainty surrounding the EU recovery fund and obstacles therein proving to be seemingly unmoveable, support for the single European currency remains resilient. But for how long? Next week the ECB will meet to set the agenda for monetary policy across […]

Euro   After hitting a near 3 month high v USD, EUR was, if not exactly on the skids last night, at least 0.40% below its high. Concerns were mounting at the impact of more Covid cases on the EU economies. Angela Merkel, revered internationally but especially at home-an unusual description for a politician these […]

Who goes there?   EURUSD has been gradually unwinding it’s overvalued position upon the expectation that the ECB will attempt to ‘talk down’ the Euro. Despite a track record of doing so within the central bank, telling currency markets what to do is no simple thing. The consensus forecast for today’s monetary policy decision is […]

Just too good to be true? Can’t take my eyes off of EU(R).   Amongst the winners of the pandemic have been Gold, the Euro and increasingly the Pound Sterling. Sure, the first two have reached their highest rates in one case ever and in the other for several years but for the Pound to […]

Explosion   The decline in the US Dollar has been caused by three things 1) the explosion in ‘money’ and debt 2) the collapse in real yields underlying the Dollar and 3) a lack of control over the virus in the United States. This trifecta of threats to the US Dollar has accommodated the appreciation […]

Pocket Money   Last night, after 21 hours of negotiations, the German government secured an agreement on the next phase of fiscal spending. The measures announced range from more pocket money for children to a climate change fund orientated towards digitisation and electric cars. The one big thing missing was an incentive for the purchase of […]

The Phoenix and The Fool: a guide to EURUSD.   As the Euro approaches a 7 week high I thought it important to qualify the recent rally in the single currency. It is surging across the board largely due to the integration measures that it is being seen to be considering. With Germany and France […]

Delivery Hero   German online takeaway food company Delivery Hero reported almost double delivery orders and revenues in their Quarterly report. This Berlin based company is a good example of what the future for diners and shoppers will likely look like post Lock Down as they already have a well developed electronic sales platform which […]

How to cure Coronavirus   Taking lead from the US House of Representatives, Italy, China, and now the IMF, apparently the cure to Coronavirus is to print a ton of money. In fact, more; much more! Ten tons of $100 bills is worth approximately a billion dollars. That means the IMF’s pledge of $50bn for […]

Prada   Fashionistas keenly anticipating the Prada Resort Japan fashion show on 21 May are set for disappointment. While Japan remains a key market for Prada the Milan based company has postponed the show due to the Coronavirus outbreak. Watch out for news of concerns regarding the potential impact on the mega Japan event for […]