SGM-FX insights

Discussion and Analysis by Charles Porter:   In accordance with our week ahead expectations, today and tomorrow will be another testing and opaque period for major currency pairs. Today’s events will be followed closely because each contains the propensity to arrest or enhance the current trend of a strong Euro, a weak dollar and a […]

Discussion and Analysis by Charles Porter:   The strength of the Euro against the dollar and the relative weakness of the dollar against other major currencies is primarily explained by adverse dynamics surrounding the US political economy.   Macroeconomic and political uncertainties in the United States (US) is being framed as partially responsible for the […]

Discussion and Analysis by Charles Porter:  This is an important week across many of the world’s key currencies. With numerous and salient events battling for supremacy and coverage, ultimately, only time will tell what the aggregation of these event holds in store.   Negotiations on the secession of the United Kingdom from the European Union will […]

Discussion and Analysis by Charles Porter:    Currency Market Impacts of the first major Jackson Hole symposium event 2017.   The Dollar has seen dramatic intraday devaluation against other major currencies including the Euro and Pound Sterling. Live commentary and reaction was provided on our Twitter Feed whilst Chair of the Federal Reserve Board, Janet […]

Discussion and Analysis by Charles Porter:    Part One: The Week in Review   Currency movements this week have been distorted by both opportunistic and defensive speculative reshuffles. Strategic positioning has arisen from the anticipation and sentiment that pivotal currency market actors have adopted preceding this afternoon’s Jackson Hole symposium and impending Brexit negotiation round. […]

A public holiday today Stateside provides welcome relieft for the Greenback. The USD has been confirmed as the worst performing G10 currency in the first 6 months of the year according to Rabobank and is threatening to continue its poor performance into the back end of 2017.   Prima facie, one may place the blame […]

Following a Sterling rally last week, particularly against the USD, the Pound has dropped back off following Monday’s dismal UK manufacturing PMI data.   Manufacturing activity in the UK came in considerably worse than expectation with June’s figure at 54.3 as compared to a previous figure of 56.3.   This figure, showing expansion, demonstrates that […]

The Pound made great gains against the Euro, Dollar and Rand in the afternoon’s trading session following the Monetary Policy Committee’s split decision on raising interest rates.   The vote came in at 5-3 just after noon today to keep rates on hold at the record low 0.25%. Kristin Forbes surprisingly found support from two […]

As expected the Federal Reserve raised interest rates by 25bps to 1.25%. Furthermore, a new programme of balance sheet reduction will be underway by clearing a fixed amount of assets each month, though the start date is yet to be confirmed.   An update to the ‘dot plot’ graph shows the median expectation among policymakers […]

The Federal Reserve, the world’s most powerful central bank, is set to raise interest rates overnight and signal that another rise is planned for later in 2017. The headline looks almost certain to be another 25 basis point increase to 1.25%. A third hike in 7 months shows that the US monetary policy committee is […]

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 […]