Forex - GBP/USD, EUR/GBP Flows: Guardian: Tesco loses £2bn in value as profit overstatement investigation begins; GBP offers 1.6400, EUR/GBP offers 0.7900


Published at 02:32 (GMT) 23 Sep

  
GBP/USD, EUR/GBP Flows: Guardian: Tesco loses £2bn in value as profit overstatement investigation begins; GBP offers 1.6400, EUR/GBP offers 0.7900 (NIMC7501)

Guardian: Tesco has been plunged deeper into crisis after it was forced to suspend 4 senior executives and call in investigators following the discovery that its profits had been artificially inflated by £250m.

More than £2bn was wiped off the value of Britain's biggest retailer on Monday after its new chief executive told the City that forensic accountants and lawyers had been drafted in to scrutinise its books in the wake of a warning from a whistleblower that payments from suppliers were being misbooked and business costs were being glossed over. Tesco said the changes had misleadingly boosted profits by £250m in the first six months of the year.

On FX, some focus on the above Tesco news. Good to watch for any further news on UK corporates. GBP/USD at 1.6378-80, little impact on FX, though focus on shares of the firm and other corporates. GBP/USD edging back up, with focus turning to less dovish BoE stance now that Scotland vote is over. Offers at 1.6400-10, bids at 1.6300-20. UK corporates, real money, Asia demand on dips. Funds offers on rallies.

EUR/GBP at 0.7846-48, looking offered given dovish ECB, vs less dovish BoE. Offers at 0.7890-00. eye test of 2-year lows of 0.7805-10 again. Then break of 0.7800. WL

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD remains above 1.0700 amid expectations of Fed refraining from further rate hikes

EUR/USD remains above 1.0700 amid expectations of Fed refraining from further rate hikes

EUR/USD continues to gain ground on Thursday as the prevailing positive sentiment in the market provides support for risk-sensitive currencies like the Euro. This improved risk appetite could be attributed to dovish remarks from Federal Reserve Chairman Jerome Powell on Wednesday.

EUR/USD News

GBP/USD gains traction above 1.2500, Fed keeps rates steady

GBP/USD gains traction above 1.2500, Fed keeps rates steady

GBP/USD gains traction near 1.2535 during the early Thursday. The uptick of the major pair is supported by the sharp decline of the US Dollar after the US Federal Reserve left its interest rate unchanged. 

GBP/USD News

Gold needs to reclaim $2,340 for a sustained recovery

Gold needs to reclaim $2,340 for a sustained recovery

Gold price is consolidating Wednesday’s rebound in Asian trading on Thursday, as buyers await more employment and wage inflation data from the United States for fresh trading impetus. Traders also digest the US Federal Reserve interest rate decision and Chair Jerome Powell's words delivered late Wednesday.

Gold News

Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now

Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now

Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.

Read more

Fed meeting: The hawkish pivot that never was, and the massive surge in the Yen

Fed meeting: The hawkish pivot that never was, and the massive surge in the Yen

The Fed’s latest meeting is over, and the tone was more dovish than expected, but that is because the rate hike hype in the US was over-egged, and rate cut hopes had been pared back too far in recent weeks.

Read more

Majors

Cryptocurrencies

Signatures