No real respite yet for cable yet, presently down at 1.3950 (session low 1.3940). The main factor undermining sterling at present is the parlous state of the UK banking sector.
At the weekend it emerged LLoyds Banking Group had put a much bigger than expected £44 bln of loans from the Lloyds/TSB legacy into the Asset Protection Scheme. The move was part of a £260 bln deal that will give the government some 77% of the bank.
Meanwhile Barclays are expected to negotiate with the government over whether it will receive taxpayer quarantees for its toxic loans.
