Cable is looking soft in early European trade, presently down at 1.6365 from a North American close Monday around 1.6395.
A combination of banking sector upheaval (see earlier comments from FSA’s Turner), speculation we could see upto £50 bln further QE announced later this week, and ongoing worries surrounding UK’s dire public finances, are combining to weigh on sterling at the present time.
Next support looms at 1.6350 and then 1.6330.
