SGM-FX insights

Discussion and Analysis by Charles Porter:   The overwhelming dynamic of the week thus far has been one of relative tranquillity within Foreign Exchange markets. However, today’s events bring the propensity to blow this perception out of the water by providing considerable volatility to markets. Sterling has opened mildly stronger having faced headwinds during yesterday’s […]

Discussion and Analysis by Charles Porter:   Tumult within the UK Cabinet developed with the overnight resignation of Secretary of State, Priti Patel. UK political uncertainty, outside of Brexit, has not, thus far, been reflected within Sterling markets. At market open this morning, the Pound appears moderately stronger, ameliorating some of the losses that yesterday’s […]

Discussion and Analysis by Charles Porter: Consecutive days of gains for the Pound Sterling have been mildly reversed this morning. Trading slightly stronger overnight, the Pound has almost entirely eliminated the gains it made against the US dollar and the Euro at market open this morning. In the medium term horizon, the Pound has suffered […]

Discussion and Analysis by Charles Porter:   On the Wednesday 25th October, the South African Rand sustained an intraday loss well in excess of 3%. The devaluation was caused by the pessimistic, yet honest, budget speech from South African Finance Minister, Malusi Gigaba. Against the Pound Sterling, the effect was tempered briefly by a bout […]

Discussion and Analysis by Charles Porter:   Following the modest gains that Sterling made throughout yesterday afternoon, on the whole, Sterling opens mildly stronger. The biggest mover overnight was the US Dollar. In particular, the Dollar has gained ground against the Euro, with the EURUSD currency pair currently trading at its lowest level in over […]

Discussion and Analysis by Charles Porter:   Sterling opened approximately in line with Friday’s close of play but has appreciated throughout the morning so far. Over the weekend, rumours have been debated as to the key element’s of Chancellor Hammond’s forthcoming UK Budget speech. Although a while off, markets will jostle to price in the […]

Discussion and Analysis by Charles Porter: Political and geopolitical risk has been amplified immensely this weekend. The threat to the kingdom of Saudi Arabia is significant, particularly given the nation’s exposure to crude oil. The threat escalated when a ballistic missile was reportedly fired from Saudi Arabia’s southern neighbour, Yemen, towards the kingdom’s capital. The […]

Discussion and Analysis by Charles Porter: The Bank of England’s Bank Rate has been raised by 25 basis points. Strangely, the rate hike forced the Pound Sterling downward. The counter intuitive foreign exchange movements following the Bank’s decision are explained by a combination of the overpricing of a rate hike and a ‘dovish’ tightening. Whilst […]

Discussion and Analysis by Charles Porter:   Yesterday evening, at 18:00 BST, the Federal Open Market Committee (FOMC) of the Federal Reserve System published its latest monetary policy decision. The minutes released alongside the decision detail that there will be no November rate hike within the US, however, the economic outlook remains positive. Whilst the […]

Discussion and Analysis by Charles Porter:   This morning, at 09:30 BST, IHS Markit released its Manufacturing Purchasing Managers’ Index. The data approximates managerial sentiment within the manufacturing industry and is thereby used as a proxy to understand the domestic macroeconomy. The latest release of this fast-moving index demonstrated a tick up in economic sentiment […]

Brexit Discussion and Analysis by Charles Porter:   Italian Prosecco, German automobiles and French wine. While bargaining chips are poured out only to be raked off the table, Brexit is coming more convoluted. No deal is better than a bad deal; no matter what you make of that statement, we’re all relatively unified behind the […]

Discussion and Analysis by Charles Porter:   Accounting for a little over one fifth of total the European Union’s GDP, the systemic significance of Germany to the single currency is hard to overstate. Of the series of hard economic data that affect currency markets strongly, the Consumer Price Index (CPI) measure of inflation is certainly […]