Pound/Dollar fell below the 1.5936 support line which was a bottom on March 28th, and is now at the lowest levels since the end of January. This happens as the forex market begins the new week. The main reason for the fall is fresh fears from the Greek crisis and the implications on Britain. Banks in the UK are exposed to Greek debt not only through direct holding of Greek debt, but also due to selling and buying of CDS at unknown amounts. This is so worrying that the UK government is pressuring banks to “volunteer” and accept some Greek debt restructuring.
For more on the crisis see:
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