SGM-FX insights

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 […]

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. […]

US fourth-quarter GDP was unrevised at 1.9% compared with expectations of an upward revision to 2.1% as a higher estimate for consumer spending was offset by a downward revision to government spending and investment.   The Chicago PMI index was notably stronger than expected with an increase to 57.4 for February from 50.3 with robust […]

The Euro traded in narrow ranges during the European session on Tuesday with resistance on approach to the 1.0600 area and little in the way of fresh Euro-zone developments as concerns surrounding the French Presidential election eased slightly.

The headline US durable goods orders report was stronger than expected with a 1.8% increase for January, but the figure was inflated by aircraft orders and underlying sales declined 0.2% on the month following a revised 0.9% gain for January. Pending home sales data was weaker than expected with a 2.8% decline for January which […]

The latest Euro-zone money supply growth data was in line with consensus expectations as growth slowed slightly to 4.9% from 5.0% previously while private loan growth was slightly stronger for the month at 2.2% from 2.0% previously.   Euro-zone economic confidence edged higher for February to the highest level since 2011 which underpinned growth hopes. […]