LONDON, Aug 30 Reuters The pound held mostly steady on Wednesday, after data showed British consumers borrowed less than expected in July in response to higher interest rates, while a gauge of housing market was forecast to hit an 11year low this year.

Volatility in the currency market remained subdued ahead of key data releases in the United States this week that could give investors a clear steer on what the Federal Reserve might do with interest rates in the coming months.

A measure of U.S. consumer inflation on Thursday and the key monthly employment report on Friday could confirm the view that the Fed may be close to the end of its ratehike cycle.

Sterling , which is heading for its biggest monthly fall against the dollar in six months in August, was up 0.2 at 1.2665 and flat against the euro at 86 pence.

The dollar has got a lift this month from evidence that the U.S. economy is proving resilient in the face of higher interest rates and persistent inflation. Sterling has dropped 1.35 so far in August, the most in a month since February39;s 2.43 drop.

This morning, GBPUSD is inching lower along with other dollar crosses, although it appears that the pounds sensitivity to risk sentiment is a bit more limited at this moment, ING strategist Francesco Pesole said.

Back in Britain, the Bank of England meets next month to discuss monetary policy. Money markets show traders expect roughly two more 25basis point rate hikes this year and for rates to peak around 5.8…