FACTBOX-A look at sterling milestones as euro parity looms=2

Nov. 9, 2007 - Sterling rises as high as $2.1161 -- a 26-year peak -- with the dollar suffering from worries about the credit market crunch and expectations of hefty Fed rate cuts. But in the following weeks the pound retreats as investors bet that the BoE will follow the Fed in cutting rates -- which it does, in December. The euro recovers from a one-month low around 69.15 pence at the start of the month and hits a four-year high above 71 pence later in the month. Oct. 30, 2007 - After more than two months of global credit market disruption and a deteriorating U.S. housing market, expectations of the second U.S. interest rate cut in less than six weeks send sterling to fresh 26-year peaks at $2.0694. More hawkish comments from Bank of England policymaker Kate Barker about the outlook for UK interest rates help the pound higher.

Sept 13, 2007 - News breaks that the global credit crunch has forced Northern Rock bank to seek emergency funding from the Bank of England. This triggers the first British bank run in more than a century. On Sept. 17, British finance minister Alistair Darling says the UK government will guarantee all deposits at Northern Rock. Euro rises to around 70.30 pence, its highest in nearly three years, starting a sharp rallying trend. Sterling slips to a one-month low vs the dollar around $1.9880. Aug 21, 2007 - Britain's Barclays Bank borrows 314 million pounds from Bank of England's standing lending facility, the first use of that penalty rate facility since credit crisis began earlier that month. Barclays taps central bank for emergency funds of some 1.6 billion pounds for a second time on Aug. 30, citing a technical hitch in UK clearing system. July 2, 2007 - Sterling rises above $2.0100 for the first time since 1981 as investors brace for a Bank of England rate hike later that week. The BoE duly hikes and the rally in sterling continues for most of the month, with the pound peaking at $2.0655.Later in the month the euro falls to a five-month low around 66.75 pence. April 17, 2007 - Sterling breaks the $2 barrier, trading as high as $2.0084 , its strongest since September 1992. The move is triggered by data showing a 3.1 pct jump in British consumer prices in March, the highest since the series began in January 1997, forcing BoE Governor King to write a letter to Chancellor Brown explaining why inflation was more than a full percentage point away from the Bank's 2.0 percent target. January 2007 - Sterling climbs above $1.9900 for the first time since September 1992, but is unable to reach the psychological $2 barrier. Euro falls to a four-year low around 65.35 pence.

December 2004 - Sterling climbs to $1.9550, its best showing in over 12 years, just as the euro hits record highs of $1.3670 . The dollar falls broadly due to growing concerns over the widening U.S. current account deficit.

June 2003 - Bank of England Governor Eddie George retires after 10 years in the job, and is replaced by Deputy Governor Mervyn King. At his first meeting as chief, in July, King cuts rates by 25 basis points to 3.5 percent.Pound trades circa $1.62. Euro trades near a record high around 72.55 pence in late May. Sept. 11, 2001 - Attacks on New York and Washington. Sterling hits 6-month highs above $1.48 by early October as the greenback falls sharply versus most currencies. June 2001 - British Labour party wins second term in office. Sterling trades circa $1.41, hitting a 15-year low that month of $1.3677. Euro trades just below 61 pence.

March 2000 - Nasdaq technology stocks bubble bursts. Sterling trades around $1.57. Euro trades around 60.00 pence.

January 1999 - Euro is launched. Euro/sterling launch rate is 70.80 pence, sterling starts the year at $1.6580 vs dollar. Oct 1997 - British finance minister Gordon Brown sets down five tests that need to be passed for European Economic and Monetary Union. The tests included compatible interest rates and business cycles with the euro area, flexibility to deal with problems, favourable conditions for businesses, Britain's competitiveness, jobs and growth.

In addition, Britain would also have to meet the EU's economic convergence criteria ("Maastricht criteria") before being allowed to adopt the euro, including two years' membership of ERM II, of which the UK is currently not a member. Sterling/dollar hit a 10 month high around $1.7080.

May 6, 1997 - Bank of England is granted independence. The government transfers full operation responsibility for monetary policy to the BoE. At the same time finance minister Gordon Brown raises interest rates by 25 basis points.Sterling rises to around 2.82 Deutsche marks, its highest in nearly five years. May 2, 1997 - Britain's opposition Labour Party wins the general election, returning to power for the first time in 18 years. Sterling trades at $1.6220 against the dollar, and fetches 2.80 marks.

Nov, 1995 - Sterling hits a record low of around 2.16 marks in November, according to BoE data, driven by broad mark strength. Deutsche mark hit a record high against the dollar at 1.37 marks in April 1995.

September 1992 - Sterling rises as high as $2.0100 from $1.70 six months earlier, only to plummet later in the month when Britain is forced out of the ERM. The pound drops 25 percent in just three months after speculative selling -- most famously from mega-investor George Soros -- forces Britain to detach itself from the ERM on the day dubbed Black Wednesday.

Sterling falls to around 2.51 marks, its weakest on BoE data going back to 1975. February 1991 - Sterling/dollar climbs to $2.0045, breaking above $2 for the first time in a decade. The dollar comes under broad pressure, despite central bank intervention to support it, as markets focus on the widening yield differential with Germany. Sterling falls to 2.93 marks, a one-month low. November 1990 - Margaret Thatcher resigns after 11 years as Prime Minister. Finance minister John Major wins leadership contest, taking over as leader of ruling Conservative party and premier.Sterling falls to around 2.89 marks, a five-month low. October 1990 - Sterling joins Europe's Exchange Rate Mechanism (ERM), the precusror to a single European currency, with a band of six percent above or below a central rate of 2.95 German marks per pound. At a Rome summit, Prime Minister Margaret Thatcher resists move towards single European currency but finance minister John Major persuades her to end her opposition to British participation. Sterling trades at around 3.03 Deutsche Marks, a two-month high.