London - Sterling rose towards seven-year highs against the euro while gilt futures fell on Wednesday after data showed British pay growth far outstripped inflation in December and the jobless rate fell.
Average weekly earnings, including bonuses, rose 2.4% in annual terms in December, well above inflation of 0.5% and picking up from November. The Office for National Statistics also said Britain's unemployment rate fell to 5.7%, its lowest level in more than six years.
Sterling rose to 73.795 pence per euro, not far from a seven-year high of 73.715 pence struck late last week. Against the dollar, sterling rose 0.6% to a high for the day of $1.5437, up from $1.5377 before the data was released.