HSBC has been in the spotlight for days and now Barclays is in the unwelcome glare as their shares fall 20% .
The banking carousel began the week in the US and swung to Europe and the UK as the week wore on. Governments will keep having to dig deeper and deeper to shore up lenders as private investors will keep their hands deep in their pockets until toxic mortgage debt is purged from the balance sheet of the banks.
EUR/GBP is rallying and cable is under late pressure as more UK outlays are expected to help the beleaguered princes of the City.
From yesterday’s 1.4473 lows to this morning’s 1.4980 highs , we’ve retraced just over half. Solid support is eyed at 1.4665 where there are a series of hourly highs as well as the 61.8% retracement of the Thursday/Friday rally.
