SGM-FX insights

False signal   As a barometer of the world economy the price of oil is watched closely. Due to the relatively inelastic demand and supply of oil, at least in the short run, higher oil prices tend to be a signal of a more active global economy. Therefore movement of energy market tickers higher can […]

St Valentine   Named after two martyrs both named Valentine executed by Roman Emperor Claudius ll in the 3rd century AD on 14 February(14-02-0002), Valentines Day now enjoys worldwide commercial success. It started off as a pagan festival which was then adopted by the Catholic Church before taking off with cards, flowers and gifts being […]

Ocado   British online grocery, Ocado not only announced soaring annual earnings of 69% yesterday but felt sufficiently confident to announce that the future of food retailing had changed-for ever. No longer will shoppers choose to visit supermarkets, but will instead click and await delivery. Ocado’s hook up with Marks and Spencer is going very […]

501. V2   Having begun its program only a week ago, the plug has been pulled on South Africa’s immediate immunisation through vaccination plan. The first doses of the Oxford-AstraZeneca coronavirus vaccine entered South Africa last week, greeted at the airport by the President and ministerial officials who hailed the delivery as a milestone in […]

The Euro   Following Mario Draghi’s selection as Italy’s next Prime Minister, markets were upbeat on Italy’s prospects with the all important spread of 10 year Italian Bonds to German Bunds being at 100 basis points for the first time for a year having blown out to 240 basis points last April when Italy was […]

US Employment   Cheering news for the global economy from the US with initial jobless claims falling to a weekly 779,000 which suggests that US unemployment is beginning to reduce . Mid January there were 17.8 million Americans claiming unemployment benefits. Equities rallied on the news yesterday and the USD strengthened against most currencies; US […]

From President to Prime Minister   After passing on the ECB’s Presidency following eight full years in office, Mario Draghi was set to retire. However, yesterday Super Mario accepted the mandate offered by Italy’s Prime Minister Sergio Mattarella to form a new technocratic government. This follows the resignation of Giuseppe Conte in response to the […]

Oil   With OPEC agreeing to keep supply just below demand, Saudi Arabia voluntarily cutting their production by 1 million barrels per day, inventories therefore falling and cautious optimism on economic growth, WTI oil duly rose to $54.88 in yesterday’s session. Forecasts vary but at present point towards a rise from current levels by as […]

Oil With OPEC agreeing to keep supply just below demand, Saudi Arabia voluntarily cutting their production by 1 million barrels per day, inventories therefore falling and cautious optimism on economic growth, WTI oil duly rose to $54.88 in yesterday’s session. Forecasts vary but at present point towards a rise from current levels by as much […]

Hokey Cokey   The public handling so far of challenges to the EU’s vaccination program have been little short of disastrous. Tensions and criticisms have built within and outside of the European Union with accusations of protectionism and foul play levied towards the European Commission in particular. The challenge to the bloc flies directly in […]

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)   This week will see the UK applying to join this trading bloc that includes Canada, Brunei, Australia, New Zealand, Mexico, Malaysia, Chile, Japan, Peru, Singapore and Viet Nam. Negotiations will start later in 2021. The attraction is that this bloc aims to remove almost all trade […]

Oil   Oil prices are a little firmer at present with WTI at $52.10 on a weaker USD and capped on concerns that the time to roll out vaccinations will weigh on global economic performance. However what has changed radically in the past year is the amount of oil that was being stored in tankers […]