** UK banks edge higher despite reports of a 2 billion pound($3.26 billion) settlement over FX rigging.
** Sky News report cites UK banks Barclays, RBS and HSBC as three of the six banks involved intalks.
** All still up marginally for the day by between 0.1 and0.8 pct, with the news seen as positive by the market.
** "Once we have some clarity on fines then the move ispositive in the long-term," said a broker.
** News comes a month before results of ECB's Asset QualityReview are due. (1 US dollar = 0.6129 British pound) (RM: alasdair.pal.thomsonreuters.com@reuters.net)