Government talks and the market goes down. It’s been the case for the past several years and it remains so despite the change in administration. The market has very little confidence in the new boss, just as they did in the old boss.
EUR/USD trades down at 1.2635 as the S&P 500 sheds another 1%. US bond yields continue to dip, down to 2.79%.
Cable has pulled back even more quickly, down now at 1.4125 from 1.4305 not much more than an hour ago. Dealers say Lloyds Bank debt has been cut to junk status, though I have not seen it on the wires.
1.4100 is providing support now with more at 1.4035/40.
