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Why is the pound falling against the euro?

16 January 2013 Last updated at 11:45 GMT

The pound has been steadily weakening against the euro for the last few months.

One pound will currently buy €1.20 whereas in the summer of 2012, it would have bought €1.28 making holidays to Europe more expensive now.

BBC Radio 5 live Breakfast asked Jeremy Stretch, the head of Foreign Exchange Strategy at CIBC if the pound sterling was looking vulnerable.