Bank of England governor King is on the wires, and like his compatriot Ben Bernanke, he is not sugarcoating the state of his domestic economy. He says the UK is probably entering a recession and that housing market weakness will probably continue. Inflation risks have shifted decisively to the downside in the last month, he says, while noting the banking system has not been so close to collapse since World War 1.
Cable is under fresh pressure after the remarks, diving from near 1.6950 to 1.6844. 1.6803, the October 10 low is still intact. Barriers are seen at 1.6800 and stops are perched below that level on a break.
