A moment of reflection
Today's news headlines:
'UK to make "failure to prevent fraud" a criminal offence'. The upcoming Economic Crime and Corporate Transparency bill has aimed a recourse. It lowers the limit at which prosecutors can pursue firms for being negligent in preventing fraud—a much-welcome sight after the recent Wirecard and FTX fiascos. Obviously, there is a balance to be struck in the legislation between 'teeth' and clarity of language, so that interpretation of arcane statutes doesn't become its own cottage industry. (Financial Times)
'EY Germany to axe hundreds of jobs in post-Wirecard cost-cutting push'. EY is cutting German back office staff numbers with gusto in a bid to reinstate profitability in the post-Wirecard era. The reason for the surfeit of staff in Germany is that these people were all employed on the Wirecard audits, which missed that half of Wirecards Revenue and a ton of cash were thin air, which is ironic. (Financial Times)
Overnight the Dollar index continued to trade a touch lower, but overall it's been a quiet start to the session. There is a tangible feeling of waiting on the Debt-Ceiling debate in the US, a response from the Bank of Japan to the mounting tension in sovereign bond markets, but more narrowly for some meaningful data to give markets a nudge.
UK CBI Realized Sales: 11:00 AM
US Advance GDP q/q: 1:30 PM
US Durable Goods Orders: 1:30 PM
US Unemployment Claims: 1:30 PM
US New Home Sales: 3:00 PM
GBP/USD – 1.2420
GBP/EUR – 1.1370
EUR/USD – 1.0920
USD/CAD – 1.3375
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.