By Stefano Rebaudo

(Reuters) -Sterling snapped a four-day rising streak as data on Tuesday showed British unemployment rose, while annual wage growth slowed slightly, bolstering expectations for a Bank of England interest rate cut next month.

Yields on 2-year gilts, more sensitive to expectations for BoE policy rates, dropped 6 bps to 3.74%, within a whisker of their lowest since August 2024.

Appetite for risky assets, which usually supports the British currency, was mixed with European shares rising to a two-week high while U.S. stock futures dropped 0.20% after the S&P 500 jumped 1.5% the day before.

Sterling fell 0.33% to $1.3135, after hitting the day before $1.31914, the highest level since October 29.

The U.S. dollar rose against the safe-haven yen and versus the growth-sensitiv

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