FX Strategist

Greg Gibbs

Fundamental analysis of topical themes in FX

Amplifying Global FX Capital

Amplifying Global FX Capital was founded in 2015 and is fully owned by Greg Gibbs. It is a registered company both in Australia and Colorado, USA and is a licensed in Australia to provide financial services.

We are producing a regular trading view orientated macroeconomic analysis of topical themes in global financial markets, with a particular focus on foreign exchange. We invite you to view an “executive summary” of these reports in “AmpGFX Reports” under our “Research” menu.

These reports are drawn from the analysis of Greg Gibbs and inform the capital management he undertakes on behalf of the company. The trading performance is posted periodically on our website. We aim to build our company into both a research and capital management business. We are currently in the planning phase for managing capital for wholesale customers.

Greg Gibbs has spent his working life of more than 26 years in financial markets, beginning in 1989 at the Reserve Bank of Australia, after completing a Bachelor of Economics Degree (Honours) at the Australian National University. He has been a CFA Charterholder since 2005. He has worked in Sydney, Singapore, New York and London for major global banks and presented on foreign exchange markets to major financial institutions and companies around the world, and maintained a high profile in the financial media.

Before Amplifying Global FX Capital, Greg was the Head of Asia Pacific Market Strategy at the Royal Bank of Scotland based Singapore. He now resides in Breckenridge Colorado.

FX & Rates

The failure of the USD to make clearer gains despite near record high yield advantages across a wide range of currencies suggests that there is a sizeable risk premium built into the USD.  This risk premium may reflect the high-risk domestic and foreign policies adopted by the Trump administration, the polarisation of the US electorate and likelihood of a split Congress after the mid-term elections, creating a more unstable outlook for the US and global economy.

The failure of the USD to make clearer gains despite near record high yield advantages across a wide range of currencies suggests that there is a sizeable risk premium built into the USD.  This risk premium may reflect the high-risk domestic and foreign policies adopted by the Trump administration, the polarisation of the US electorate and likelihood of a split Congress after the mid-term elections, creating a more unstable outlook for the US and global economy.

The CNY has developed a steady downtrend.  While this is often discussed in the context of political relations between the US and China, it may just reflect the fundamental realities.  These include policy easing in China to offset credit tightening related to increased regulatory scrutiny on shadow-finance.  Risk metrics in the Eurozone have deteriorated further; including wider credit risk premiums for periphery sovereign and corporate bonds.  This appears to be contributing to a weaker EUR.  EUR/CHF may have room to fall after diverging from wider Italian bond spreads in the last month.  The rise in US real yields in the last two months appears to reflect, to a significant extent, a higher term premium.  This suggests that the Fed’s balance sheet unwind may be starting to have a bigger impact, both supporting the USD and dampening global equities.    The cost of hedging long EUR/USD positions over three-month terms is at a record high.

The CNY has developed a steady downtrend.  While this is often discussed in the context of political relations between the US and China, it may just reflect the fundamental realities.  These include policy easing in China to offset credit tightening related to increased regulatory scrutiny on shadow-finance.  Risk metrics in the Eurozone have deteriorated further; including wider credit risk premiums for periphery sovereign and corporate bonds.  This appears to be contributing to a weaker EUR.  EUR/CHF may have room to fall after diverging from wider Italian bond spreads in the last month.  The rise in US real yields in the last two months appears to reflect, to a significant extent, a higher term premium.  This suggests that the Fed’s balance sheet unwind may be starting to have a bigger impact, both supporting the USD and dampening global equities.    The cost of hedging long EUR/USD positions over three-month terms is at a record high.

ECB and Fed QE Reversal in Play, Credit Risk Dampening CNY and EUR

In the FX market, fundamentals are battling excessive positioning in several currencies, including the AUD and NZD where positioning data suggest that the market is near record net shorts.  After around six months of exodus, funds may also be looking to rebuild positions in emerging markets.  Asia has lagged other regions recently as the market continues to worry about the economic outlook in China and headwinds from sour trade relations with the US.  Nevertheless, it is participating in a recovery in risk assets in the last week.  The capacity for a sustained retreat in the USD against other major and EM currencies may be limited by the recent strong gains in real long-term yields in the US.  This may be limiting the recovery in EUR and GBP.

In the FX market, fundamentals are battling excessive positioning in several currencies, including the AUD and NZD where positioning data suggest that the market is near record net shorts.  After around six months of exodus, funds may also be looking to rebuild positions in emerging markets.  Asia has lagged other regions recently as the market continues to worry about the economic outlook in China and headwinds from sour trade relations with the US.  Nevertheless, it is participating in a recovery in risk assets in the last week.  The capacity for a sustained retreat in the USD against other major and EM currencies may be limited by the recent strong gains in real long-term yields in the US.  This may be limiting the recovery in EUR and GBP.

Fundamentals Battle Positioning, Real Yields Support the USD

Time to step back and take a breath in the FX market.  It lacks conviction, is displaying inconsistent correlations and being whipped around by competing news and views on uncertain events.  The market can no longer rely on the US government to act as a source of stability for global markets.  The rebound in Asian currencies is counterintuitive as US pressure mounts on Chinese trade and economic relations.  But it may reflect position adjustment, a pull-back in US yields, and US policy uncertainty.  The AUD continues to be supported by strong commodity prices, but domestic, Chinese and global financial stability risks, exacerbated by rising US rates, accounts for its weakness this year; we continue to see downside risks dominating

Time to step back and take a breath in the FX market.  It lacks conviction, is displaying inconsistent correlations and being whipped around by competing news and views on uncertain events.  The market can no longer rely on the US government to act as a source of stability for global markets.  The rebound in Asian currencies is counterintuitive as US pressure mounts on Chinese trade and economic relations.  But it may reflect position adjustment, a pull-back in US yields, and US policy uncertainty.  The AUD continues to be supported by strong commodity prices, but domestic, Chinese and global financial stability risks, exacerbated by rising US rates, accounts for its weakness this year; we continue to see downside risks dominating

Rebounds in Asian Currencies and AUD May Be Short-Lived

Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

Cross-Asset Liquidity Strategist

Implementing Research Using Alt Data & AI

CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


<ul>
<li>Gold prices are near 8-year lows, despite growing turmoil and uncertainty across World asset markets</li>
<li>Many investors claim gold is 'undervalued' because of uncertainty, but gold is truly a Global Liquidity barometer</li>
<li>Global Liquidity is 'tight' and weak gold, flat yield curves, sluming EM equities and skidding cryptocurrencies confirm this</li>
<li>Gold is particularly sensitive to Central Bank liquidity injections. A recession in 2019 could be the trigger for a renewed policy easing, but until then we favour avoiding the bullion market</li>
</ul>


Gold prices are near 8-year lows, despite growing turmoil and uncertainty across World asset markets
Many investors claim gold is 'undervalued' because of uncertainty, but gold is truly a Global Liquidity barometer
Global Liquidity is 'tight' and weak gold, flat yield curves, sluming EM equities and skidding cryptocurrencies confirm this
Gold is particularly sensitive to Central Bank liquidity injections. A recession in 2019 could be the trigger for a renewed policy easing, but until then we favour avoiding the bullion market


United States

The euro is the official currency of the European Economic & Monetary Union.  The US dollar is the official currency of the United States of America.

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USD Held Down by a Large Risk Premium

The failure of the USD to make clearer gains despite near record high yield advantages across a wide range of currencies suggests that there is a...

Greg Gibbs

ECB and Fed QE Reversal in Play, Credit Risk Dampening CNY and EUR

The CNY has developed a steady downtrend. While this is often discussed in the context of political relations between the US and China, it may...

Greg Gibbs

Fundamentals Battle Positioning, Real Yields Support the USD

In the FX market, fundamentals are battling excessive positioning in several currencies, including the AUD and NZD where positioning data suggest...

Greg Gibbs

Rebounds in Asian Currencies and AUD May Be Short-Lived

Time to step back and take a breath in the FX market. It lacks conviction, is displaying inconsistent correlations and being whipped around by...

Greg Gibbs

Is Gold Bullion About To Break-Out?

Gold prices are near 8-year lows, despite growing turmoil and uncertainty across World asset markets Many investors claim gold is 'undervalued'...

Michael J. Howell

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