Sterling credit crisis raises FX fears

While there is yet little evidence of a slowdown in euro/sterling or dollar/sterling flows, bankers remain wary that problems plaguing the credit markets could spell a long-term decline in demand for sterling assets, ahead of sterling's expected entry into the eurozone.

"This is just reflective of what is going on in the sterling market as a whole," said Michael Hardman, head of credit sales to UK investors at JP Morgan Chase in London. "Just ask dealers how much they're doing in cable these

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