SGM-FX insights

Discussion and Analysis by Charles Porter:   Gertjan Vlieghe, an External member of the Monetary Policy Committee, gave a speech in London today offering an uncharacteristically hawkish conclusion. Whilst the conclusion appeared to be only as aligned to a rate hike as yesterday’s Monetary Policy Decision, the endorsement from a characteristically dovish member, and the […]

Discussion and Analysis by Charles Porter:   This afternoon, the Bank of England’s Monetary Policy Committee published what at first sight appeared to be a Dovish decision. However, concealed amidst the interest rate and quantitative easing headlines were more Hawkish undertones. The market, to a significant extent, internalised these comments as a signal of an […]

Discussion and Analysis by Charles Porter:   This morning, Switzerland’s National Bank (SNB) issued a press release detailing their latest monetary policy assessment. Their report detailed that the SNB is “maintaining its expansionary monetary policy”. Because the Bank had previously adopted negative exchange rates, this has interesting implications for macroeconomic thought as well as the […]

Discussion and Analysis by Charles Porter:   This morning, before the European Parliament, Jean-Claude Juncker, president of the European Commission, gave the annual State of the European Union address. Juncker’s speech gave a daring and interesting presentation of the present and future state of the Union. A number of interesting events and currency movements arose […]

Discussion and Analysis by Charles Porter: Sterling has opened high once again this morning. Since the start of the month, sterling has gained value, now reaching the highest rate against the Dollar for over one year. Sterling now trades around the value it did in the immediate aftermath of the Brexit decision. We analyse why […]

Discussion and Analysis by Charles Porter:   PART TWO: Inflation data and the United Kingdom   This morning saw the monthly release of salient macroeconomic data related to prices and inflation. Each major GBP-based currency pair has experienced a rally following the release, leading to an explicit appreciation of the Pound Sterling. This article analyses […]

Discussion and Analysis by Charles Porter:   PART ONE: Inflation data and Exchange Rates   This morning saw the monthly release of salient macroeconomic data related to prices and inflation. Each major GBP-based currency pair has experienced a rally following the release, leading to an explicit appreciation of the Pound Sterling. This article analyses the […]

Discussion and Analysis by Charles Porter:   Unexpected events that are endogenous to currency systems and the macroeconomy are difficult to forecast accurately. However, their manifestation generates considerable risk and volatility; phenomena to either seek or eschew dependent upon individual intentions and approaches to risk.   This article covers recent developments within Uzbekistan’s Som and […]

Discussion and Analysis by Charles Porter:   This week will challenge the strength of the Great British Pound and thereby generate considerable upside and downside risks. However, the materialisation of UK performance may be subsumed within broader, global, currency trends.   Saying a prayer this weekend was perhaps the most useful form of global speculation. […]

Discussion and Analysis by Charles Porter: Natural uncertainty amongst geopolitical insecurity: Part Two. Whilst the media has abounded with talk of a risk off environment precipitated by numerous central bank announcements and geopolitical threats, natural disasters are embedding themselves upon our radar. Our thoughts and concerns truly rest with those affected, either directly or indirectly. […]

Discussion and Analysis by Charles Porter   Whilst the media has abounded with talk of a risk off environment precipitated by numerous central bank announcements and geopolitical threats, natural disasters are embedding themselves upon our radar. Our thoughts and concerns truly rest with those affected, either directly or indirectly. This article addresses the financial legacy […]

Discussion and Analysis by Charles Porter:   Mario Draghi, President of the European Central Bank (ECB), offered a cautious and Dovish press conference following today’s monetary policy decision. This decision saw all three headline monetary rates remain constant, whilst net asset purchases were maintained at €60bn. This article analyses the market’s reaction to this move […]