Sterling hits two month low against euro

The pound fell to an 11-week low of €1.1461 yesterday despite bullish global equity markets.

Sterling remains at a low of €1.1460 this morning following a slide which began after the Bank of England's MPC minutes were published last Tuesday. The pound spiraled in response to the news three members of the MPC are keen to further extend quantitative easing beyond the £50bn eventually decided. Duncan Higgins, senior analyst at Caxton FX, says investors sensed the gap between the the policies of the Bank of England and other central banks. While the UK is extending its monetary policies, the ECB is winding down measures to stimulate its economies, he says. "Therefore we exp...