How hgh can the euro go ?

Sterling fell slightly against the Euro this morning, dropping back to near an all-time
low as investors remained pessimistic on prospects for the economy despite a
rate cut the previous session. The B of E
cut rates by 25 basis points to 5% on Thursday and said credit conditions had
tightened, while the ECB as expected kept rates on hold and
signalled that inflation risks means no monetary easing is likely in
the near future. Investors will look to producer prices data on Monday for
clues on whether inflationary pressure will temper the Bank's ability to cut
interest rates in the coming months. Right now
Interbank is at 1.2480

source IFX