LONDON, March 11 Reuters The British pound traded just below a sevenmonth high touched last week on Monday as investors digested recruitment data and looked ahead to Tuesday39;s wage and employment figures.

Sterling was last down 0.1 at 1.2841 after jumping 1.6 last week as investors bet that the Bank of England will be slower than the European Central Bank and U.S. Federal Reserve in cutting interest rates.

The euro was up 0.1 at 85.15 pence, reversing some of last week39;s 0.6 drop.

The minor dip in the pound came after data showed Britain39;s labour market slowed sharply in February as recruitment firms reported the biggest drop in demand for staff from employers since the coronavirus lockdown of early 2021.

Investors now turn their attention to Tuesday39;s figures, where the focus will be on the pace of average earnings growth. It is expected to have remained high at 6.2, excluding bonuses, in the three months to the end of January, unchanged from December.

The pound continued to hold on to recent gains, having been buoyed by diverging interest rate cut expectations, said Nikesh Sawjani, UK economist at Lloyds, in a research note.

A key focus will be the weekly earnings growth data which remain above levels consistent with the Bank of Englands 2 inflation target. Headline pay growth has moderated in recent months… but policymakers will be looking for more progress.

Investors will also pay close attention to the U.S. consumer price index inflation data, due…