SGM-FX insights

Discussion and Analysis by Grace Gliksten   The prolonged struggle for Angela Merkel to form a government under her leadership collapsed last night. Christian Linder, leader of the centrist Free Democrats Party, the FDP, announced just before midnight that the party was pulling out of talks with Merkel’s conservative alliance. He said that the parties […]

Discussion and Analysis by Charles Porter:   The start of what promises to be an interesting and path-defining week has begun with similar action. The Euro lost considerable value overnight while coalition talks between Ms Merkel’s Christian Democratic Union and the Free Democratic Party unfurl. Whilst the evidence builds around May’s willingness to increase the […]

Discussion and Analysis by Charles Porter: Sterling has received a boost at market open this morning primarily on the back of hearsay. The enduring battle over the Brexit divorce bill continues to weigh on the currency, however, it is reported that the establishment and leadership might be willing to up their offer. The US Dollar […]

Discussion and Analysis by Charles Porter: The UK labour market remains healthy. Yesterday’s statistics release reflected the UK labour market in quarter three of 2017. The headline change was a moderately sharp fall in employment. However, when contextualised, this change looks insignificant due to the sustainment of a hyper-low unemployment rate, unparalleled for decades. Therefore, […]

Discussion and Analysis by Charles Porter:   The Euro has opened stronger yet again today, continuing its upward surge against the US Dollar. The single currency has gained in excess of 2% against the US Dollar within just one week. The correction following the European Central Bank’s Dovish tapering of quantitative easing now exceeds the […]

Discussion and Analysis by Charles Porter:   The return of data today could see an increase in volatility within many major currencies. The reading of Germany’s third quarter GDP has already provided support to the Euro, with UK inflation data also due this morning. The Pound has carried over the weakness that it incurred during […]

Discussion and Analysis by Charles Porter:   A couple of months ago, the cloud looming over the United Kingdom’s political economy appeared to have receded, if only to show a lighter shade of grey. Following Theresa May’s Florence speech and the warm reception that it received from European officials, the Pound Sterling received a highly […]

Discussion and Analysis by Charles Porter:   The Pound Sterling dominates the story in foreign exchange markets following the weekend. The potential to induce vote of no confidence in May’s leadership was claimed to be in excess of 80%, with 40, out of a necessary 48, MPs said to have signed their name in support […]

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 […]