As, bank of England has hinted that interest rate could go down to 0%. I have not heard ECB or Mr Trichett, making any such remarks. In view of this I can only see the £ detoriating against € & $
You have not heard it yet.
EU is going to be as bad if not much worse than UK.
The 2006-2007 was the time for the run on the dollar. 2008 is the year of the run on the Pound. 2009 might be the year of the run on the Euro.
Germany is already in recession, I do not expect Italy, Spain or Greece to save the Euro zone.
Of course UK might go all the way to the drain, with unemployment of more than 3 million (today 10K were annoiunced to be cut by BT) and Pound might become worthless.