SGM-FX insights

A Matter of Global Importance   It’s time to talk planetary defence. I’d be surprised if the coveted FEMA-NASA research event that has unfolded this week is not already at the forefront of your mind. However, if the 13th page of the free London newspaper the Metro or the ‘Strange’ tab of Sky News hasn’t […]

Markets   At the beginning of this week 1USD would have bought you 42 Argentine Pesos. Today that has become 45 Argentine Pesos. A 7%+ devaluation in a week is dramatic for the already beleaguered Argentine economy and represents a record low for the Peso. This has affected all emerging markets. Generally the USD has […]

INDYREF-eree!   Yesterday’s confirmation by Scottish First Minister Nicola Sturgeon failed by rain on Sterling’s parade. Sterling finished the European trading session yesterday 0.3% up against the Euro and 0.2% against a strong US Dollar. Whilst the Pound eventually lost the battle against the US Dollar in New York trading hours, it did manage to […]

Markets   Have started the week in a positive frame of mind with the Dow recording a record high and its best performance since last September, oil firm with WTI at $64.04 and USD strong and unchanged.     In the Beginning… (Genesis) or Beresheet in Hebrew   The Israeli Beresheet moon mission ran into […]

A lot of sunburned Brits will be headed back to work today after the long weekend. All four nations of the United Kingdom enjoyed their hottest Easter Mondays on record, with Saturday also stealing the 2019 crown for the hottest day so far this year. My thanks go to the Met Office for these statistics […]

Rand Resilience   South Africa’s Rand is one of the most freely traded emerging market currencies in the world. With limited protectionist monetary architecture against capital in/out flows and with no explicit targeted manipulation of the currency from the central bank, the Rand is subject to the whims of international sentiment.   With this in […]

Exchange Rates   We have written previously about the low level of exchange rate volatility in the past year and it is now official: exchange rate swings are at a low for the past 5 years. Euro/USD 3 month volatility is running at a third of the norm over the past 18 years. The closely […]

Great edifices, like great mountains, are the work of centuries:     I should think many of you reading this brief right now have visited, seen, or at least heard of the Notre Dame Cathedral in Paris. No doubt too that you have spotted the saddening news of the fire that last night caused as-yet […]

Markets   At the start of Easter week markets are looking to the start of Golden Week in Japan this time with a further holiday period with the new Emperor’s accession. The longest continuous closure of the Japan market since WW2 is causing a few frayed nerves. In the UK currency, credit and equity markets […]

Market   As further evidence of a cooling in the global economy surfaced this week, it was inevitable that a scapegoat would be sought. Not only Europe but also the IMF are getting in on the act to blame Brexit. In currency world this week EUR has weakened versus USD and GBP has held up […]

The British stereotype can be a confusing one. The French call us “Roast beef”, I suppose due to our affinity to the quintessentially British Sunday roast and, one would assume, partially in retaliation to being referred to as frogs. Internationally, are we not also supposed to love a good cup of tea and love a […]

GBP/EUR     For all those affected by this currency pair the tendency is to focus on GBP and its changing daily/hourly strength or weakness due to the torrid action in Westminster. As perceptions that a NoDeal is out of the picture, GBP strengthens and then as news emerges that PM May and Leader of […]