SGM-FX insights

Howzit China?      Not so good apparently! Gross Domestic Product figures have grown by their slightest margin on record since official observations began on Chinese economic growth in 1992. Still, the economy posted a growth rate of 6.2% year-on-year for the second quarter of 2019 showing that whilst growth is still resilient, the emerging […]

Turkey and Trump(TNT-hopefully not)   With Turkey taking delivery of the first batch of Russian S400 missile systems last week, it was inevitable that POTUS would retaliate by imposing sanctions this week. It is unclear what those may include and there is a range of possibilities from the withholding of the F35 jetfighter manufactured by […]

Jeremy Corbyn-the Harry Houdini of UK politics(maybe)   After weeks of prevarication  despite intense pressure from his MPs, the Leader of HM’s opposition has said that there should be a further Referendum on the EU and at that time, Labour will campaign for the UK to remain in the EU. Brilliant! There is either zero […]

Swing Low   The carry trade is a favourite in foreign exchange (or indeed any) investment: use something cheap to buy something rewarding that you hope in turn is still worth something at the time you decide to cash your chips in. For example, with the Rand yielding 6.75% due to its underlying interest rate […]

Pocahontas     Even the pros at Disney might have trouble thinking up and depicting the delicate rise and fall of emotions between China’s Xi Jinping and the States’ Donald Trump. Following this weekend’s summit, we’re closer to the resolve, the closing credits and watching the fully grown man in the back row pretending he […]

Good Vibrations   With Beach Boy Brian Wilson turning 77 yesterday, there are a number of lessons to be drawn including the one that says that some rock stars do miraculously live long(er) despite their lifestyle. In 1942 when Brian was born, the USA was drawn into WW2 following Pearl Harbour. At that time and […]

Tango Time     Alright it’s not September yet, Strictly’s not back on TV and our tango won’t star one sequin clad pro and an overweight celebrity Ed Balls with far too much enthusiasm to be healthy (sorry Ed). But the composition of the showdown between the two potential next leaders of the Conservative Party […]

Sintra, Portugal and the ECB Governor   Mario Draghi ECB Governor despite the reported highest rate of wage growth reported earlier in the week saw weak inflation and growth as key challenges in his speech at Sintra yesterday. He also said that further rate cuts remain an option that the ECB may choose. So it […]

Mario, Mark and Jay     The Pound was the biggest loser yesterday, sliding virtually unimpeded through numerous resistance levels. Brexit has been a challenge to Sterling’s value to say the least, however, the implications within its biggest crosses is alarming. Despite enjoying an ailing US Dollar in the more immediate aftermath of Brexit, a […]

Ten Green Bottles   Yesterday’s first round contest for the new Conservative leader duly skittled 3 of the candidates whose supporters will now add their votes among the remaining 7 next week. Meanwhile further stories about one or more of the 7 are rumoured to be splashed in the weekend press. GBP rangebound depending on rhetoric from […]

Ready, Steady, Go!     Sterling markets yesterday were moved by the unfolding Conservative Party leadership contest, parliamentary developments as well as economic data releases. However, as with most days, the price action within Sterling’s currency pairs was largely determined by the consequences of the United Kingdom’s future relationship with the European Union. Boris Johnson, […]

Mexico and Markets   So the Mexican President and incidentally the market had it right and the US tariffs threatened for today have been shelved. This had been largely discounted as we wrote last week but still the Peso strengthened against the USD over the weekend.   Disappointing US employment figures on Friday have weakened […]