SGM-FX insights

Discussion and Analysis by Charles Porter:  This is an important week across many of the world’s key currencies. With numerous and salient events battling for supremacy and coverage, ultimately, only time will tell what the aggregation of these event holds in store.   Negotiations on the secession of the United Kingdom from the European Union will […]

Discussion and Analysis by Charles Porter:    Part One: The Week in Review   Currency movements this week have been distorted by both opportunistic and defensive speculative reshuffles. Strategic positioning has arisen from the anticipation and sentiment that pivotal currency market actors have adopted preceding this afternoon’s Jackson Hole symposium and impending Brexit negotiation round. […]

Following a Sterling rally last week, particularly against the USD, the Pound has dropped back off following Monday’s dismal UK manufacturing PMI data.   Manufacturing activity in the UK came in considerably worse than expectation with June’s figure at 54.3 as compared to a previous figure of 56.3.   This figure, showing expansion, demonstrates that […]

The Pound made great gains against the Euro, Dollar and Rand in the afternoon’s trading session following the Monetary Policy Committee’s split decision on raising interest rates.   The vote came in at 5-3 just after noon today to keep rates on hold at the record low 0.25%. Kristin Forbes surprisingly found support from two […]

Following the election result in the UK last week Sterling has maintained its downward projection as uncertainty surrounding the nature of Britain’s exit from the EU clouds investors.   Prime Minister May had been set to employ a harder style Brexit with her promise of ‘a good deal or no deal’ however her failing to […]

The UK PMI manufacturing index was lower than expected with a decline to 54.6 for February from a revised 55.7 the previous month.   The index remained above the long-term average and overall confidence remained firm with further gains in employment while inflation pressures remained strong. The net consumer lending, money supply and mortgage approvals […]

In testimony to the Treasury Select Committee, new Monetary Policy Committee (MPC) member Hogg stayed close to the bank’s recent script and there was no market impact.   There was choppy trading surrounding the Afternoon fix, but the UK currency was unable to gain sustained support, especially with real yields continuing to move against Sterling. […]

Sterling maintained a solid tone against the dollar ahead of the US open on Thursday, but continued to hit resistance above the 1.2500 level. The Euro regained the 0.8500 level which helped underpin confidence with a further advance to the 0.8550 area as Sterling overall lost support with markets still wary over the risk of […]

UK consumer prices declined 0.5% in January and, although the year-on-year rate increased to 1.8% from 1.6% which was the highest rate since June 2014, this was slightly lower than the consensus forecast of a sharper increase to 1.9%.   There was significant upward pressure on transport costs which was offset by a decline in […]

Sterling was unable to make any headway against the dollar during the European session on Monday, but it was able to strengthen against the Euro for the sixth successive session as the single currency dipped to lows around 0.8460.   According to data from Visa, UK consumer spending slowed to a five-month low of 0.4% […]

The EU Commission revised its 2017 Euro-zone GDP growth forecast marginally higher to 1.6% from 1.5% previously, although this was still lower than the 2016 outcome and the underlying tone remained generally downbeat with a high degree of uncertainty over both domestic and US developments.   The inflation forecast for this year was revised higher […]