Cable extends south to 1.2718 amid risk aversion (GBP is risk-sensitive)

Italy's 40% windfall tax on banks sends Italian bank stocks tumbling

1.2718 = intra-day low (1.2714 was Monday's low; 1.2689 was Friday's low)

Italian bank stock losses are also weighing on EUR/USD nL1N39P0PW

BREAKINGVIEWS-Italy's bank tax may be anything but "one off" nL4N39P2R9

Moody's downgrades US banks, warns of possible cuts to others nL1N39P03N