Sterling exchange rates are likely to remain very weak versus the Euro if the Eurozone does raise interest rates this week. The risk for anyone buying Euros will be if the anticipated interest rate hike is bigger than the expectation of a 0.25 point increase.
Comments from Jean Claude Trichet early last month about the need for a modest increase, whilst not part of a series of hikes, really boosted the Euro against the Pound and the Dollar, and given that both the latter currencies are unlikely to be able to raise rates in the near future due to sluggish growth forecasts the Euro is likely to be riding high in the near term.
Key dates are the US FOMC Minutes this evening, and the Bank of England and ECB rate decisions due lunchtime on Thursday. Be ready to move quickly should the results deviate from expectations and exchange rates change quickly as a result.