The pound extended its decline after weak employment data was released.

The pound extended its losses, touching a four-week low against the euro, as weak UK employment data increased the possibility of another interest rate cut as early as March. Earlier data showed that the UK unemployment rate unexpectedly rose and wage growth slowed in the three months to December. Analysts at Monex Europe said in a report, "The data shows that the labor market is cooling faster than widely expected." These analysts suggested that the pound could face further declines, with Wednesday's data expected to show UK inflation slowing to 3.0% in January. The euro rose to a high of 0.8743 against the pound. According to data from the London Stock Exchange Group, the pound fell to a low of 1.3516 against the US dollar.