Sterling fell in European trade on Tuesday against a basket of major rivals, sharpening losses for the third straight session against the dollar, and plumbing a two-week trough following weak UK wages data.
Such data bolstered the case for an early UK interest rate cut this year as inflationary pressures subside.
GBP/USD
GBP/USD fell 0.5% to 1.2661, the lowest since January 5, with a session-high at 1.2733, after closing down 0.2% on Monday, the second loss in a row amid renewed dollar demand.
UK Wages
Earlier UK data showed average wages rose 6.5% in November, below estimates of 6.8%.
Wages represent a major element of local inflation, and a slowdown in wages will drag inflation alongside it down to the 2% target.
The data bolstered the case for an early UK interest rate cut this year.
Bailey's Testimony
Now markets await Bank of England Andrew Bailey's testimony ahead of the House of the Lords later today.
And tomorrow, UK consumer prices data will be released, crucial for gauging the likely path ahead for BOE monetary policies.
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