Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Morning Brief – Markets

Morning Brief – Markets

SGM-FX
Mon 9 May 2022

Markets

 

As we start the week with WTI oil at $110.60, the USD remains very strong at EUR/USD 1.0550 and GBP/USD 1.2280 and GBP/EUR 1.1680. Gold firmer at $1882.

 

US 10 Year Treasury Bond

 

Last week the yield reached 3.14% at the same times as the Dow lost 1000 points on Thursday. The 10 Year has a deserved reputation as being the canary in the recessionary coal mine since it is this instrument that traditionally smells a whiff of a forthcoming recession first. This last occurred 4 years ago I n 2018 when the yield reached 3.25% before falling back as the Covid pandemic made itself felt.

 

South Africa

 

Starting this morning and running until Thursday in Cape Town is the Africa Mining Indaba Conference. This promises to be the best attended event for years with the world’s top brass from the mining industry slated to attend including titans from the USA and Japan. With Russia which normally produces 7% of the world’s nickel requirements plus 10% of platinum plus 25% of palladium out of the picture, the world is entertaining projects in south Saharan Africa that previously would have been considered too risky. USD/ZAR 16.07.

 

Las Vegas

 

As previously reported Nevada and Las Vegas in particular is suffering from a multi year drought. One unexpected outcome is that the LV police department are clearing up long outstanding missing persons cases. Last week a missing person was found in a barrel with a gunshot wound to the head as the waters of nearby Lake Mead receded further. Now a further missing person from the 1970’s has also turned up in Lake Mead. Police do not believe that either are deaths from natural causes.

 

I Don’t like Mondays

 

It was this day in 1980 that Bob Geldof and the Boomtown Rats won the best song category at the Ivor Novello Awards for this evergreen number. Here it is and for those of you who do not know what a telex machine is, it was how we communicated in the FX market (other than by phone) at the outset of my career in financial markets:

 

The silicon chip inside her head
Gets switched to overload
And nobody’s gonna go to school today
She’s gonna make them stay at home
And daddy doesn’t understand it
He always said she was good as gold
And he can see no reasons
‘Cause there are no reasons
What reason do you need to be shown?

I don’t like Mondays
(Tell me why)
I don’t like Mondays
(Tell me why)
I don’t like Mondays
I wanna shoot the whole day down

The Telex machine is kept so clean
And it types to a waiting world
Her mother feels so shocked, father’s world is rocked
And their thoughts turn to their own little girl
Sweet sixteen, ain’t that peachy keen
Now it ain’t so neat to admit defeat
They can see no reasons
‘Cause there are no reasons
What reasons do you need, oh oh oh oh?

I don’t like Mondays
(Tell me why)
I don’t like Mondays
(Tell me why)
I don’t like Mondays
I wanna shoot the whole day down
Down, down, shoot it all down

 

 

 

Discussion and Analysis by Humphrey Percy, Chairman and Founder

Click Here to Subscribe to the SGM-FX Newsletter

Related Insights

    Get news and insights, delivered directly

    Start your day with a sharp, concise and relevant financial briefing from our team of experts.





    Stay ahead of the curve and get your daily briefings direct to your inbox. By signing up, you agree to our terms & conditions.