Sterling extended gains on Thursday to hit a 20-month high against the euro and on a trade-weighted basis as investors pared back expectations of more monetary stimulus from the Bank of England. The euro fell to 81.645 pence, its lowest level since late August 2010 with near term support at 81.43 pence, the low struck on August 23, 2010. A UK bank was cited as a big seller of the euro/sterling cross. Trade-weighted sterling rose 0.12 percent 82.9, its highest level since late August, data from the Bank of England showed. (full story)