SGM-FX insights

ECB   Mario Draghi talked tough yesterday reiterating that the ECB will not be shy of taking action in support of the EU economy in a period of weakening growth and uncertainty, citing populism and inevitably Brexit. The Euro strengthened, bond yields rose and after a day of up and down trading the net move […]

Banks: Give it a rest!   It’s European Central Bank day and as Draghi’s days in office run thin, all eyes will be on the Bank at 12:45 BST. Markets continued their onslaught against global bond yields yesterday with European, US and UK treasuries rallying in a bid for safety. The market continues to price […]

Mexican Peso and Markets Round Up   President Andres Manuel Lopez Obrador of Mexico not only believes but the market believes that he will pull off what most thought to be unattainable-namely no tariffs between Mexico and the USA and all by June 10 ie this coming Monday. The Mexico Peso has performed best of the […]

P.S. there’s a trade deal.     The U.S President, on official state visit to the United Kingdom, had a turbulent landing at Stansted airport yesterday. I’m sure air conditions were smooth over the north easterly runway, however, the President’s Twitter account had already brewed up a storm ahead of touch down. Fake news, vitriolic […]

Markets   The significance of a 4%+ fall in WTI oil last week is not to be underestimated given the reduction in production by Saudi Arabia. Oil markets have taken fright at the increasing concern of a global recession prompted by a US Sino trade war. Last night Andrea Nahles leader of the SDP, Angela […]

China: The Dead Spread   When I worked on the floor of the Chicago Futures Market, traders watched and traded the price differential between spot prices of pork meat and the futures price of live hogs. It was less than charmingly named the Dead Spread. Pork as we all know is a fundamental of the […]

Wide Ranges     Yesterday was a rough day in markets. Equities continued their tumble with key US indices producing price action that could suggest an imminent market correction. Amidst an intensification of the trade war masqueraded as threats of new Chinese economic weaponry, global bond yields continued to tumble. In a bid for safety, […]

UK Passports and US versus Europe   This may have passed you by but in case it has not: the UK is a member of the 6 month club which allows nationals of countries such as the UK to visit the USA with only the unexpired time necessary for the trip. Now for Europe: in […]

One May too many:   Surviving a third May proved to be too much for the British Prime Minister who, on Friday, announced her resignation in front of 10 Downing Street. Following a meeting with the chairman of the 1922 committee, she was left with no choice but to announce her defeat to the nation. Chosen […]

Elections:     India   PM Narendra Modi has been returned for a further 5 years with a resounding vote of confidence in his party the BJP. 600 million of the 900 million eligible votes have been counted and it points to 300 of the 543 seats going to the BJP. The Opposition Congress Party […]

AUDJPY   From the title you might think well, I don’t trade Aussie Dollars, come to think of it I’ve never been there in my life. Similarly, I’ve never had a Japanese Yen to my name, why on earth would I consider the exchange rate between the currencies of these two countries that are at […]

PM May’s Gamble   GBP liked the idea of a second Referendum rumoured to be what PM May would announce yesterday afternoon. The actuality sent GBP lower. FTSE steady at 7328. Rather than give credence to the market rumour, PM May painted a picture with multiple and in many cases contradictory possible outcomes of not […]