Sterling has given up some of its gains this morning after official figures showed that wage growth in the UK slowed by more than expected.
The pound fell below $1.22 shortly after the Office for National Statistics released its monthly figures on employment and wage growth, showing that average weekly earnings grew 2.2 per cent in the three months to the end of January, down from 2.6 per cent in the last report.
The jobless rate, however, fell unexpectedly to 4.7 per cent from 4.8 per cent.
Sterling had been 0.6 per cent higher against the dollar before the figures were announced as it recouped some of its losses from Tuesday, when it hit an eight-week low on Brexit concerns.
The pound remained stronger on the day after the ONS figures were released, trading up 0.4 per cent against the dollar at just under $1.22 and 0.2 per cent higher against the euro at €1.1480.