SGM-FX insights

Discussion and Analysis by Charles Porter:   Sterling markets have opened weaker this morning following a budget that was overshadowed by pessimistic growth forecasts. Sterling markets reacted ambivalently to the second reading of third quarter Gross Domestic Product (GDP). Measuring economic growth, the statistics release showed no change. Currency markets are showing a mixed message […]

Discussion and Analysis by Charles Porter: Today’s budget was delivered to the House of Commons with considerable showmanship and bluff. The Chancellor’s hand contained little more than off-suit low cards – 1.5 and 1.3 to be precise. However, the chancellor managed to find a concealed rabbit within the deck, admirably silencing the qualms of critics […]

Discussion and Analysis by Charles Porter:   As markets open this morning, it is apparent that the value of the US Dollar was harmed by Janet Yellen’s remarks during a public conversation with Sir Mervyn King, former Bank of England Governor, last night. Speaking at the NYU Stern School of Business, Yellen painted an opaque […]

Discussion and Analysis by Grace Gliksten   It has been reported that Prime Minister Theresa May won ministerial support to increase the Brexit offer from €20bn to €40bn yesterday. May is hoping that the increase will unlock stalled negotiations, but has been warned by Eurosceptic colleagues that this is conditional upon securing good transition and […]

Discussion and Analysis by Charles Porter: Sterling markets once again look more robust at market open this morning. While the outcome of yesterday’s 10-strong ’inner’ cabinet meeting has not been made public, and is not expected to become so within the next few weeks, reports coming from media and privileged cabinet ministers are positive. Dominating […]

Discussion and Analysis by Charles Porter:   Mid-April saw the beginning of a consistent and predictable bear (downward) trend in the value of the Pound Sterling with respect to the Euro (GBPEUR). Up until the start of September, the Pound lost, on average, 2.14 percent each month. This staggering trend would have seen Sterling fall […]

Discussion and Analysis by Grace Gliksten   The prolonged struggle for Angela Merkel to form a government under her leadership collapsed last night. Christian Linder, leader of the centrist Free Democrats Party, the FDP, announced just before midnight that the party was pulling out of talks with Merkel’s conservative alliance. He said that the parties […]

Discussion and Analysis by Charles Porter:   The start of what promises to be an interesting and path-defining week has begun with similar action. The Euro lost considerable value overnight while coalition talks between Ms Merkel’s Christian Democratic Union and the Free Democratic Party unfurl. Whilst the evidence builds around May’s willingness to increase the […]

Discussion and Analysis by Charles Porter: Sterling has received a boost at market open this morning primarily on the back of hearsay. The enduring battle over the Brexit divorce bill continues to weigh on the currency, however, it is reported that the establishment and leadership might be willing to up their offer. The US Dollar […]

Discussion and Analysis by Charles Porter: The UK labour market remains healthy. Yesterday’s statistics release reflected the UK labour market in quarter three of 2017. The headline change was a moderately sharp fall in employment. However, when contextualised, this change looks insignificant due to the sustainment of a hyper-low unemployment rate, unparalleled for decades. Therefore, […]

Discussion and Analysis by Charles Porter:   The Euro has opened stronger yet again today, continuing its upward surge against the US Dollar. The single currency has gained in excess of 2% against the US Dollar within just one week. The correction following the European Central Bank’s Dovish tapering of quantitative easing now exceeds the […]

Discussion and Analysis by Charles Porter:   The return of data today could see an increase in volatility within many major currencies. The reading of Germany’s third quarter GDP has already provided support to the Euro, with UK inflation data also due this morning. The Pound has carried over the weakness that it incurred during […]