The Pound edged even closer to the 1.30 mark against the Euro in trading on Friday as Valencia stepped forward to virtually ask for a bailout.

On top of this we have seen Spanish bonds get higher and higher now sitting well over the 7% mark which is perceived as an unofficial level that economies generally tend to need a bailout at.

There is now a record difference or gap between German and Spanish bond levels showing just how differently these two economies are performing and how big the problem is that the European Central Bank have to overcome… Personally I do not think there is an answer to this mess and in the coming months we are going to see some huge market movements.