While the economic data this morning was at best a mixed bag, signs of life in the banking sector are helping send stocks to the topside this morning. The pound is a big beneficiary, particularly against the JPY. That cross is headed for resistance at 148.00, trading at 147.60 at writing. 148.50 and 148.85/90 are resistance levels if 148.00 is overcome.
One interesting side-note from the Wells earnings announcement is the fact that they are not a big player in the credit default swap market and will not have benefited from the AIG unwind that some see boosting bank profits this quarter. Maybe the sector is in better shape than we think.