Cable is down below the 1.6400 level despite a round of Chinese bids just above that level that helped slow the earlier plunge. The pressure on the pound is coming across the board this morning as UK banking sector exposure to Dubai and other trouble spots keeps the market wary as another round of contagion is feared.

EUR/USD is consolidating gains above the former resistance level at 0.9135 and has its eye on resistance up at 0.9239, the high from late October. Next support for cable is down at 1.6360/65.