by David Pewes
Sterling has fallen -0.47% versus the euro from its highest in almost 7 years today, to 1.3038.
The pound has weakened against the common currency, because of fears that the European Central Bank will not launch emergency monetary stimulus this week, as is widely hoped for.
Pound weakens, as ECB may refrain from quantitative easing
Sterling has dropped today, due to concerns that the ECB will not launch an emergency scheme, called quantitative easing, to lift Europe's economy and avoid deflation, as is widely expected.
This has hurt the pound, because if the ECB doesn't launch quantitative easing, it won't inject vast sums of euros into the financial system, which would otherwise have weakened the euro.
Sterling has hence dropped, in anticipation of the European Central Bank's decision this Thursday.
