http://www.forexdaily.net/euro-and-pound-down-investors-anticipate-more-rate-cuts

The euro and pound were down against the US dollar and yen on Tuesday, as investors are still unsure of which way the markets are turning. Disappointing UK economic data put the pound under pressure in early trading, as analysts another Bank of England interest rate cut.
Risk demand was low as other economic figures showed the Japans economy shrank 0.5% in Q3 of 2008, far more than the anticipated 0.1% fall. Japanese entertainment firm Sony, also announced it would be cutting 5% of its jobs as part of their restructuring process.
The euro fell 0.7% against the dollar, as the pound fell 1% to $1.4764 on Tuesday, with the euro reaching record highs against the struggling UK currency.
The yen was also up 1% against the euro and 1.1% higher verses the sterling, as investors unwind carry trades; when the yen is used to fund high-yielding currencies.