SGM-FX insights

Doomsday:     An unnecessarily intelligent man named Francis Fukuyama, in 1989, wrote an essay entitled “The End of History?”. In this essay, written in the twilight of the cold war, the American Political Scientist posited the hypothesis that perhaps, with democracy sweeping across the globe, history would be over. Striking a strong resemblance to […]

Barnier’s Brexit Boost:     The Rand has given back some of the strength it gained on the back of yesterday’s pivotal ministerial resignation. Succumbing to heavy Dollar purchasing, emerging market currencies traded down at the index level throughout the day. Sterling had the headline performance of the day, receiving a late-session boost once again, […]

A day of resignations:     The US Dollar and the Rand are being moved the most within FX markets, awakened by important resignations on their respective soils. In the United States of America, Nikki Haley, the US ambassador to the United Nations, has resigned representing yet another high-profile exit from Trump’s inner circle of […]

Baby Steps:   Brexit sentiment is waning this morning despite highly positive sentiment over the Brexit swarming markets on Friday. Italian risk continues to weigh upon markets, supporting GBPEUR around 1.1380; back below 0.880 in the more popularly traded EURGBP. This leaves the Pound bragging three-month highs over the Euro. The Dollar continues to dominate […]

Dutch Courage:   The Unilever’s back and so’s the Pound. Only months ago, the decision was announced to relocate the Unilever headquarters to the Netherlands, adding to the barrage of negative sentiment that weighed upon the Pound. However, in a surprise decision, the plan has been abandoned and a dual head-quarter arrangement will persevere. Likely […]

Unaccustomed Union:   The direction to markets today has been clear: Brexit is looking good and the Dollar’s rivals are back. With the Pound and the Euro both respectively seeing enormous bids on the back of Brexit progress, the Dollar has lost some of the traction that has made it the trade of 2018. The […]

Good Friday? Good Monday!     Mild progress has been made in the Euro this morning, extending yesterday’s late afternoon and New York session gains that the European single currency had already made. Considerable losses that had pushed the Euro to a six-week low on a trade weighted basis were initially provoked by the Italian […]

Good Friday? Good Monday!   The Conservative Party conference is well under way in Birmingham, with headline speakers yesterday including International Trade secretary, Liam Fox, and long-standing government minister, Jeremy Hunt. Markets will have to wait until tomorrow for the premier Theresa May to speak at the conference. The Pound made impressive gains yesterday upon […]

Inside the Hourglass,   Sovereign states must increasingly feel as though their countries are built upon the bedrock of the sand in a rapidly shrinking hourglass; assuming a position in an ever-collapsing pool, occasionally colliding with each other and frequently going under. Today was the turn of Euro to take a turn for the worse. […]

Stumbling Block,   In a surprising day for markets, the Euro is the major mover. Markets paid enormous interest to the Italian budgetary negotiations within their newly formed domestic coalition. With the dominating ‘League’ party, the composition of spending was almost entirely up for grabs, with secessionist sentiment surrounding the entire debacle. However, with numerous […]

The Sterling continued to extend its consolidation through the European session yesterday. Once again, the US session looked upon our domestic pressure with less sanguine eyes, succumbing to political uncertainty amidst staunch Commons conflict and even intra-party disputes. Speaking once again later today in Washington, May could provide the market with hope for the other […]

Tainted Promises,   Salzburg provided sterling markets with ultimately intraday gains in excess of 0.5%; one of Sterling’s best performances in months. The developments were great enough to push cable (GBPUSD) to close to 1.33, rolling another month’s worth of losses from the currency pair, equal to a 1.15% intraday displacement in favour of the […]