Sterling hits 2-wk low vs euro, QE remarks still weigh

* Sterling falls as market absorbs King's QE comment

* Euro/sterling at two-week high

* UK index-linked gilt auction eyed

By George Matlock

LONDON, Nov 12 (Reuters) - Sterling hit a two-week low against the euro on Thursday as investors absorbed Bank of England chief Mervyn King's comments on Wednesday that left the door open to more asset purchases to keep monetary policy loose.

But analysts said with a session bereft of significant data or event risk future direction for the currency was unclear.

"It is not clear whether this decline will continue but we have a dearth of data until next Tuesday for sterling to contend with," said Stuart Bennett, senior FX strategist at Calyon in London.

At 0855 GMT, the euro EURGBP=D4 was down 0.1 percent versus the pound at 90.23 pence but still close to a two-week high of 90.66 pence hit earlier in the session.