Sterling soared above $1.32 on Tuesday after wages data exceeded forecasts, but traders said concerns over a favorable Brexit deal would curb the currency’s surge.
The British currency jumped 0.4 percent to $1.3210. It climbed 0.3 percent to 87.75 pence versus the euro.
The fresh figures showed that British employees’ basic salaries increased at their fastest pace in almost 10 years over the summer months.
Less than half-year before Brexit, the EU and the UK are working on further Britain's frontier with the Irish Republic free of border checks. But no agreement is still reached.
Even if the Irish border problem is solved, investors remain anxious about other circumstances of relations with the bloc. Thus, traders have become more cautious about British currency.