Currency traders might want to pay attention to the health of the U.K. banking industry as they chart the path of the pound.
Using shares of Royal Bank of Scotland Group Plc, Britain’s biggest government-owned lender, as a proxy could help traders divine where sterling is headed versus the yen.
In at least three instances since 2011, peaks or troughs in RBS shares preceded similar moves in the pound-yen rate, and the path of the stock’s price in recent months may signal gains ahead for the pound.
Source: Bloomberg Pro Terminal
Trader-G.Bozhidarov
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