Cable has traded lower in Asia, presently down at 1.6380 from a North American close Thursday around 1.6435.
Pairing hasn’t been helped by wobbly risk sentiment, but the main damage seems to have been inflicted by an article in The Telegraph. The paper reports Lloyds Banking Group has been forced to abandon it’s plan to withdraw from the Government’s toxic debt insurance scheme after failing to raise emough capital to meet the FSA’s strict requirements.
Among other factors weighing; likelihood of early move by BOE to cut deposit rate paid on bank reserves; likelihood of additional QE coming soon; and ofcourse crap public finances.
Data today;
08:30 GMT: UK public finances (PSNCR) for August expected £14.5 bln, public sector net borrowing (PSNB) expected £17.6 bln
08:30 GMT: M4 money supply for August expected +0.8% m/m, +13.8% y/y
Next supports 1.6350/60 and 1.6320.
