UK bank dominoes falling; Lloyds talking with gov’t; Barclays next?

GBP remains weighed down at mid-afternoon with concerns over the fate of the bulk of the UK banking sector falling under government control growing. Lloyds Bank looks like it will reach that phase and the press has now turned its focus on Barclays.

EUR/GBP buying is helping keep EUR/USD underpinned and cable offered. The cross trades at 0.8985, EUR/USD at 1.2680 and cable at 1.4112.