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Sterling extended its falls against the single currency after increasing rumours that the Bank of England (BoE) could opt for monetary easing in order to improve the economy, Reuters reports.
The euro was up by 0.6 per cent to 89.41 pence, which came after the pound was threatening to reach the seven-month low figure on Friday after knocking through the 89 pence barrier on Thursday.
What's more, forex traders could be affected by UK gross domestic product data, which is set to be published tomorrow.
In addition, the news provider pointed out that weak figures may ensure the chances of more quantitative easing (QE) from the BoE will be increased.
Speaking on Friday, Tom Levinson, currency strategist at ING, said: "It's now dawning on the sterling market that more QE from the BoE may be coming as well."
Posted by Greg Secker
