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The euro and British pound have been big beneficiaries of the US dollar's weakness, but for what it's worth, the euro is ultimately stronger than the British pound right now as EUR/GBP has made headway toward 0.9500. While both the European Central Bank and Bank of England want to avoid cutting rates to zero, there is big difference in their stance on quantitative easing.

The UK has already started to do so, and while ECB President Jean-Claude Trichet said that the central bank was studying additional non-standard measures, the ECB will have a much more difficult time embarking on quantitative easing, or as Trichet prefers to call it, credit easing. This is because there is no central Treasury for the Euro-zone, and thus, it will take substantial coordination to achieve the same actions.

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