SGM-FX insights

A public holiday today Stateside provides welcome relieft for the Greenback. The USD has been confirmed as the worst performing G10 currency in the first 6 months of the year according to Rabobank and is threatening to continue its poor performance into the back end of 2017.   Prima facie, one may place the blame […]

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 […]

As expected the Federal Reserve raised interest rates by 25bps to 1.25%. Furthermore, a new programme of balance sheet reduction will be underway by clearing a fixed amount of assets each month, though the start date is yet to be confirmed.   An update to the ‘dot plot’ graph shows the median expectation among policymakers […]

The Federal Reserve, the world’s most powerful central bank, is set to raise interest rates overnight and signal that another rise is planned for later in 2017. The headline looks almost certain to be another 25 basis point increase to 1.25%. A third hike in 7 months shows that the US monetary policy committee is […]

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 […]

This was the lowest reading in the current economic cycle and the lowest since 1973 which maintained confidence in a very firm labour market and expectations that the Federal Reserve would move to tighten policy in the short term.   Fed Governor Powell maintained an optimistic tone on the outlook and stated that the Fed […]

Provisionally, Euro-zone consumer inflation rose to 2.0% for February from 1.8% and was in line with expectations, although this was the strongest reading for four years.   Unemployment held at 9.6% for January with markets waiting for any signal of a policy change from the ECB and the inflation data did not provide support to […]

US PCE prices rose 0.4% for January with an annual rate at 1.9% from 1.6% and close to the Fed’s 2% target, although the core increase was held to 1.7% and unchanged from the previous month.   The ISM manufacturing index rose to 57.7 for February from 56.0 in January and this was the highest […]

US PCE prices rose 0.4% for January with an annual rate at 1.9% from 1.6% and close to the Fed’s 2% target, although the core increase was held to 1.7% and unchanged from the previous month. The ISM manufacturing index rose to 57.7 for February from 56.0 in January and this was the highest reading […]

Dollar gains dominated the European morning on Wednesday after Fed Dudley’s hawkish comments overnight and the Euro dipped to below 1.0550 against the US currency, although rising German yields eased net selling pressure to some extent.   German consumer process rose 0.6% in February with the annual inflation rate rising to 2.2% from 1.9% previously […]