Sept 9 Reuters The pound touched a near threeweek low versus the dollar on Monday as traders unwound bets of a supersized U.S. rate cut next week and awaited readings on the domestic economy that could dictate expectations around UK interest rates.

Sterling fell 0.42 to 1.30745 its weakest since Aug. 21.

Most major currencies were also under pressure as the dollar recovered from last week39;s declines after Friday39;s data showed U.S. employment grew less than expected in August, but indicated only a steady slowdown in the labour market.

Traders ramped up bets of a 50bps rate cut from the Fed to more than 50 on Friday, but it fell to 25 on Monday as they judged the data was not enough for a panic move by the Federal Reserve.

Investors will look to UK labour market data, British GDP figures for July as well as U.S. inflation data this week for clues on the direction of monetary policy on both sides of the Atlantic.

Britain39;s labour market cooled noticeably last month as job placements fell sharply and pay growth slowed, a survey of recruiters showed on Monday. Official data on Tuesday are expected to show robust employment growth and a further moderation in pay growth.

Any upside surprise to the UK data wage growth is expected to slow to 5, 3m3m GDP to grow by 0.6 and monthly GDP by 0.2 could open the door to EURGBP trading below 0.84, Societe Generale39;s FX strategist Kit Juckes said in a note.

Eurosterling climbed for a seventh straight day, trading…