The pound sterling extended gains for a fourth session on Tuesday, climbing to its strongest level against the euro since late July after UK labour market data reinforced expectations the Bank of England will move cautiously on interest-rate cuts. Sterling rose 0.24 per cent to 86.24 pence per euro and gained 0.28 per cent to $1.3469 ahead of US inflation figures due later Tuesday. Official data showed Britain's jobs market softened in July but at a slower pace, while pay growth in the three months to June remained elevated. Analysts at Morgan Stanley said the figures were relatively robust given the BoE's focus on inflation and wages. The central bank cut rates by 25 basis points last week in a split decision, with four of nine policymakers preferring to hold. Money markets are pricing roughly a 50 per cent chance of another cut this year. Attribution: Reuters Subediting: Y.Yasser
