SGM-FX insights

Indian Railways   Owned by the Indian government, Indian Railways in normal times operates 20,000 trains a day, has revenues of USD 28 Billion per annum and employs 1.3 Million staff. India has committed to electrify 100% of the network by 2023 and be carbon neutral by 2030. For any of you who have travelled […]

Interventions   State intervention in the foreign exchange market is a taboo subject. On the one hand, each nation holds and reports reserves of foreign currencies that are seen as critical to financial and economic stability. On the other hand, if a nation uses those reserves too aggressively then it risks being labelled a currency […]

FTSE   Four months ago in the more innocent days of February, FTSE stood at 7,500 before plummeting to 5000 in late March. Now at 6,100 FTSE is looking less certain despite the historic degree of support and stimulus from the UK Government and while the US market has largely shrugged off March with the […]

Global Markets   Following the Federal Reserve’s downbeat forecast, markets duly gave up some of the gains they have enjoyed in the past few trading sessions since the US Employment figures of last week Equity markets were down and the S&P after close in Europe by 5% which bodes badly for the end of the […]

Less Fireworks; more Firefighting   Last night the Fed voted to keep US interest rates between 0%-0.25%. I’m not sure about you but having only recently witnessed emergency meetings slashing the benchmark rate and pledging to buy corporate securities the meetings seem somewhat mundane! Even if not quite as unexpected, the Fed’s decision last night […]

Bitcoin   It’s been a few weeks since we have written about BTC or Bitcoin. At the beginning of March you may recall it was trading at $8000 before plummeting to $5000-yes I have written before about the need for strong trading stomachs for this particular index and the liquidity issues and and and… Anyway […]

Spot the Difference     What do the following two graphs have in common?         Points for the best answer: they both have a blue line, they both demonstrate limited finesse on Excel, they both don’t have labels on their axes? You’re all correct, but the true problem hidden beneath these graphs […]

OPEC+: Herding Cats   Pre meeting on Thursday the so called delinquent members of the cartel- Iraq and Nigeria in particular – reneged on their commitments to cut production. The largest members KSA and Russia in turn have said that if they do not adhere to the line agreed by OPEC+, then they in turn […]

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 […]

Renault   Maubeuge not far from Douai in northern France has a Renault factory that is pretty much at a standstill and so management are wondering if it should be part of the EUR2 billion and 14,600 job cuts that they need to make worldwide of which one third will be in France. Anyone who […]

A step too far   There is a widespread feeling within markets that valuations have gone too far too soon. For example, you’d find it difficult to find someone willing to argue that the equity market today reflects the severity of the impending recession and the erosion of corporate earnings. The thing that has defined […]

OPEC+   News that Russia has dropped its objections to Algeria which currently holds the presidency of OPEC arranging for an early get together to help out its pals Saudi Arabia, Kuwait and the UAE is set to liven up the oil market this week with a date now set for Thursday. With WTI at […]