GBP/USD printed a daily low of 1.5858 off of the back of the Spanish Governments injection of subordinated debt into the Bankia Group, rather than cash. Commentary from the ECB’s Asmussen did little to curb risk sentiment as US Equities opened lower. Price is facing resistance at 1.5880 following commentary from Italian PM Monti’s meeting with French President Hollande highlighting their shared concerns over growth and stability and belief than a final line should be drawn under the Greek and Spanish issue in the October EU summit. Meanwhile in the US, ISM Manufacturing figures have come in softer than anticipated at 49.6 against forecasts of 50 and have seen price continue its bounce off of daily lows to trade at 1.5881.
Equities remain in the red whilst commodities remain buoyant despite Brent Crudes decline. Spanish and Italian yields have continued to sharply decline as we approach the European close.