The pound sterling extended losses against the euro on Monday, hovering at a one-and-a-half-month low after its steepest weekly drop in over two years. The euro gained 0.14 per cent to 83.97 pence, buoyed by Germany's plans for a €500 billion infrastructure fund and debt rule reforms, which have strengthened the European growth outlook. The pound held steady against the US dollar at $1.2926, as broader market focus shifted to Britain's upcoming GDP data. Analysts expect limited impact on Bank of England policy, with interest rates forecast to remain at 4.5 per cent next week. Meanwhile, a cooling UK job market added to concerns over economic weakness. Attribution: Reuters Subediting: M. S. Salama
