SGM-FX insights

Discussion and Analysis by Charles Porter:   Despite considerable Sterling weakness following the Brexit referendum in June 2016, the UK trade balance has refused to improve. The data, released by the Office of National Statistics yesterday, attests to a deterioration of the UK’s current account and a worsening balance of payments problem. The significance of […]

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 […]

  Discussion and Analysis by Charles Porter:   The original Brexit vote was motivated by a dissensus within the incumbent Conservative government under David Cameron; at least that is the public and academic consensus. I argue that this suggests that the delivery of a final secession, and the eventual form that Brexit takes, will be […]

  Our Foreign Exchange Specialist, Charles Porter, speaks with London School of Economics Associate Professor, Dr. Waltraud Schelkle. Regarding Brexit, we discuss how the passing of the German election may accelerate progress within negotiations as well as the possibility, acceptability and likelihood of a Second EU referendum within the UK.    Understanding the Brexit process, including the rate of progress […]

Discussion and Analysis by Charles Porter   Today our social media interactions indicated an uptake in hedging options including the use of forward contracts. Specifically, corporations concerned about their exposure to import markets and international firms vulnerable to payroll and exchange transactions are seeking insure against downside risk and exchange rate fluctuations. The present uptake […]

Discussion and Analysis by Charles Porter   Today our social media interactions indicated an uptake in hedging options including the use of forward contracts. Specifically, corporations concerned about their exposure to import markets and international firms vulnerable to payroll and exchange transactions are seeking insure against downside risk and exchange rate fluctuations. The present uptake […]

Discussion and Analysis by Charles Porter:   Today holds considerable upside potential and downside risk within major currency pairs. Before our publication of a week in review and week ahead report, this article guides you though this tumultuous Friday and weekend. The events covered include North Korea’s supposed threat and Theresa May’s speech in Florence: […]

  Interview and Conversation between SGM’s Charles Porter and Dr. Waltraud Schelkle of the London School of Economics     This week, foreign exchange specialist Charles Porter spoke with Dr. Waltraud Schelkle. In this article we transcribe a segment of the full interview. It provides an analysis and contextualisation of the Federal Open Market Committee’s […]

Discussion and Analysis by Charles Porter:     Last week, the minutes published following the Monetary Policy Committee’s Decision rallied the pound sterling. This event triggered an appreciation of the Pound Sterling contributing to intraweek gains in excess of 3 percent. Moreover, the Hawkish conclusion delivered by Gertjan Vlieghe, a traditionally Dovish Committee member, signalled […]

Discussion and Analysis by Charles Porter:   The week that is now behind us has been eventful and tumultuous. One overarching characteristic was a bullish Pound Sterling. Driven by statistics releases and central bank activity, the Pound finished the week trading at its strongest rate against the US Dollar since 23rd June 2016. The intra-week […]

Discussion and Analysis by Charles Porter:   Gertjan Vlieghe, an External member of the Monetary Policy Committee, gave a speech in London today offering an uncharacteristically hawkish conclusion. Whilst the conclusion appeared to be only as aligned to a rate hike as yesterday’s Monetary Policy Decision, the endorsement from a characteristically dovish member, and the […]

Discussion and Analysis by Charles Porter:   This afternoon, the Bank of England’s Monetary Policy Committee published what at first sight appeared to be a Dovish decision. However, concealed amidst the interest rate and quantitative easing headlines were more Hawkish undertones. The market, to a significant extent, internalised these comments as a signal of an […]