FX Markets

Traders: UK Eurozone Entry Could Hurt UK Bank's FX Profits

NEWS

UK banks focusing on sterling trading could see FX volumes decrease as the UK prepares for possible EMU entry, say some market participants.

UK Prime Minister Tony Blair last month gave the clearest indication yet that a referendum on joining EMU would come in his next term in office, if elected. The UK is expected to go the polls in May, although the election has not yet been called.

RBS and Barclays Capital -- whose FX operations are most dependent on sterling business -- would be hardest hit

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