LONDON, Feb 2 Reuters Sterling reversed course on Friday as the dollar strengthened after U.S jobs data to leave the pound set for its biggest weekly fall against the greenback in eight weeks.

The British currency was last down 0.79 against the dollar at 1.2643, and set for a weekly fall of 0.45, its most in a week since early December.

It had been flat on the day and set for its first weekly gain of 2024 until the release of data showing that U.S. employers added far more jobs in January than expected, reducing the chances of nearterm Federal Reserve interest rate cuts.

That sent the dollar soaring across the board, and the dollar index, which tracks the currency against six peers, was up 0.8.

If there was any doubt that the March cut was still being debated I think that has been put to bed which is at least helpful for a clarity perspective, said Kevin Gordon, senior investment strategist, Charles Schwab, in New York

The pound, which is vulnerable to swings in overall market sentiment, dropped more than the euro, with the European common currency last trading 0.1 higher at 85.38 pence.

Sterling was still set to finish the week stronger on the euro for the sixth week in a row, however.

Thursday39;s Bank of England BoE meeting was the main event for the pound this week. It came in largely as expected with the BoE holding rates steady and dropping language from its statement about potentially tightening policy further if needed.

However, Governor Andrew Bailey…