Sterling might add to its recent gains if UK August inflation data, due on Wednesday at 0600 GMT, comes in higher than expected.
Annualized CPI is forecast to jump to 2.9% -- which would be its highest since January 2018, from 2.0% in July.
Hotter-than-expected UK inflation data could further raise the chance of a Bank of England interest rate hike as early as February.
UK interest rate futures currently suggest there is a 55% probability of an increase by 15 basis points to 0.25% on Feb.
GBP/USD climbed on Tuesday to eye Friday's one-week high of 1.3888, with GBP/EUR rising to threaten Monday's three-and-a-half week peak of 1.1749, after data showed British employers added a record 241,000 staff to their payrolls last month. nL8N2QG12M
The strong jobs data comes days after BoE Governor Andrew Bailey said Monetary Policy Committee members were last month split 4-4 between those who felt the minimum conditions for considering a rate hike had been met and those who thought the recovery was not strong enough. nL8N2QA4LF
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