SGM-FX insights

The forex market this morning has largely extended the trends that began yesterday: the US Dollar continues to shed considerable value; the Euro appears stronger against most of its G-10 counterparts; and the Pound’s performance is highly mixed. This morning, Italian Prime Minister Paolo Gentiloni accelerated the aggregated political risk surrounding the Euro. The Italian […]

Discussion and Analysis by Charles Porter:   Deputy Governor of the Bank of England, Dr. Ben Broadbent, gave a speech two weeks ago on Brexit and interest rates. The take away message from the speech was that a disharmony between a happy public and negative markets is driving inflation. The Deputy Governor suggested that there […]

Discussion and Analysis by Charles Porter:   Mid-April saw the beginning of a consistent and predictable bear (downward) trend in the value of the Pound Sterling with respect to the Euro (GBPEUR). Up until the start of September, the Pound lost, on average, 2.14 percent each month. This staggering trend would have seen Sterling fall […]

Discussion and Analysis by Grace Gliksten   The prolonged struggle for Angela Merkel to form a government under her leadership collapsed last night. Christian Linder, leader of the centrist Free Democrats Party, the FDP, announced just before midnight that the party was pulling out of talks with Merkel’s conservative alliance. He said that the parties […]

Brexit Discussion and Analysis by Charles Porter:   Italian Prosecco, German automobiles and French wine. While bargaining chips are poured out only to be raked off the table, Brexit is coming more convoluted. No deal is better than a bad deal; no matter what you make of that statement, we’re all relatively unified behind the […]

Discussion and Analysis by Charles Porter:   Accounting for a little over one fifth of total the European Union’s GDP, the systemic significance of Germany to the single currency is hard to overstate. Of the series of hard economic data that affect currency markets strongly, the Consumer Price Index (CPI) measure of inflation is certainly […]

Discussion and Analysis by Charles Porter:   A short while ago, the Office of National Statistics (ONS) for the United Kingdom released economic growth data in the form of Gross Domestic Product (GDP). Measuring the total value of goods and services within the economy over a given time period, GDP is the favoured statistic to […]

Discussion and Analysis by Charles Porter:     Data coming out of the Eurozone has been positive and, more often than not, beaten market expectations both when concerning ‘hard’ data from the underlying economy of ‘soft’ data related to sentiment and confidence levels. The Euro, however, has been largely ambivalent throughout these releases. Whilst tax […]

Discussion and Analysis by Charles Porter:   Whilst the headline above may be many people’s aggregate impression of financial markets and politicians regardless of the short-term conditions, it is certainly the general impression of this week. With only minor data released within the UK on Tuesday and significant US data waiting until Friday, once again, […]

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:   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 […]