With bad news flowing like water and almost no left dry at the moment, I’m not exactly sure what the catalyst is for the renewed sterling weakness this morning. Grave concerns over the soundness of deposits in Icelandic-owned UK Bank Icesave seems to be one source of stress. There is also the usual chatter that the bank bailout is insufficient. Any government action that does not result in immediate broad stock market gains is immediate branded as insuffutient, as we’ve seen time and again in the last weeks.
1.7300 barriers are rumored below the market; a break targets the huge area of support between 1.7050 and 1.7225.
