RBS: Sell sterling as a top trade for 2013

RBS currency analysts have said selling sterling against the US dollar represents a "top 2013 trade" as the pound rises to a ten-week high.

The bank's FX team are concerned sterling's relative safe haven status could come under threat next year, as deteriorating public finances and productivity performance and falling credit ratings hit home. The recommendation, made on 14 December, came ahead of the pound rising to $1.6216 against the dollar yesterday, its highest level since early October. Further quantitative easing in the US has boosted the GBP/USD exchange rate in recent weeks, even as BoE governor Mervyn King repeats concerns over sterling's strength. RBS has put a $1.5050 target on the sterling/US dollar rate, a...