SGM-FX insights

Overview:   Towards the end of last week, the Dow Jones soared above $25,000.00, whilst the Dollar continued its decline. The two are unlikely to be mere coincidence as the weaker Dollar supports the activities of the outwardly orientated, international, blue-chip companies that populate the industrial index. In the UK, whilst the move has been […]

Discussion and Analysis by Charles Porter:   In a year that could see the further normalisation of developed economies’ monetary policies as well as the restoration of volatility and geo-political risk; fortune may well favour the brave. However, on this, the first trading day of the New Year, fortune also appears to favour Sterling, with […]

    The Pound initially recovered its post-Christmas losses this morning. Moreover, marginal volatility appears to have returned to foreign exchange markets. On the final trading day before 2018, the EUR-USD currency cross continues its impressive attempt to retest 1.20. The currency pair broke this level in September, and presently trades just 8 pips short […]

The forex market this morning has largely extended the trends that began yesterday: the US Dollar continues to shed considerable value; the Euro appears stronger against most of its G-10 counterparts; and the Pound’s performance is highly mixed. This morning, Italian Prime Minister Paolo Gentiloni accelerated the aggregated political risk surrounding the Euro. The Italian […]

Following Christmas, currency markets appear lethargic too. The low liquidity environment of the end of the year has seen most currencies stay within a very tight and unthreatening channel. Today, the biggest major mover of the day was the US Dollar. Today’s market movements seem rather reminiscent of the entire year: a mixed pound sterling, […]

Discussion and Analysis by Charles Porter:   Deputy Governor of the Bank of England, Dr. Ben Broadbent, gave a speech two weeks ago on Brexit and interest rates. The take away message from the speech was that a disharmony between a happy public and negative markets is driving inflation. The Deputy Governor suggested that there […]

Discussion and Analysis by Charles Porter:   After a busy day on currency markets yesterday, the biggest mover ahead of today was the Euro, followed closely by the Pound. Heightened volatility was unsurprising given the central bank monetary policy decisions that occurred in the underlying economies of the respective currencies. Monetary policy decisions from the […]

Discussion and Analysis by Charles Porter:   Yesterday afternoon, the US Dollar only continued its unrelenting advance. Since the beginning of De­cember, the Dollar has gained almost 1.5% against its shared currency counterpart, the Euro. The EUR USD cross now threatens 1.17. The most notable event of today will be an interest rate decision by […]

Discussion and Analysis by Charles Porter: After a somewhat subdued morning and afternoon yesterday, markets kicked to life. An abrupt claim from the Telegraph suggested that the UK and the EU had reached an agreement on the so-called Brexit ‘divorce’ bill. The news supported the Pound strongly, raising Sterling against the US Dollar by as […]

Discussion and Analysis by Charles Porter:   The US Dollar looked in a weak position throughout yesterday morning and into the early afternoon. However, the market open within the US saw a retraction from questionable Dollar weakness and move further away from a significant 1.20 against the Euro. Little changed yesterday to reverse the Dollar’s […]

Discussion and Analysis by Charles Porter: Many market commentators are attributing last week’s bullish Euro, 1.17s to mid-1.19s against the Dollar, to a reduction in political risk within Germany and Ireland. This view appears unfounded both in terms of pricing action and sentiment. In a moment of madness, analysts have managed to convince themselves that […]

Discussion and Analysis by Charles Porter: The Pound Sterling, the Euro and, just about, the Dollar have all received a boost this morning. Climbing over their international counterparts, the Pound is being supported by optimism ahead of December’s EU Council summit. Following strong Eurozone soft data, released yesterday morning, the Euro has similarly received a […]