LONDON, Sept 5Reuters The pound held steady on Thursday, heading for a modest weekly gain versus the dollar, ahead of U.S. employment data that could set the tone for currency markets for the weeks and months ahead.

The euro , which hit a onemonth low against the pound last week, headed for its firstly weekly rise since early August, up 0.1.

Sterling was last flat at 1.3154, up 0.2 this week and some distance from last week39;s twoyear high at 1.3269. Against the euro, the pound was also steady at 84.26 pence.

The Bank of England meets in two weeks to set monetary policy. Right now, the derivatives market shows traders see very little chance of a rate cut this month, but a quarterpoint cut is fully priced in for November .

The BoE was the first among major central banks to raise rates back in 2021, but is likely to be among the slowest to lower them, which has given the pound a lift this year.

BoE economist Huw Pill, who voted against a rate cut in August, is scheduled to speak at an event in Brussels later on Thursday.

It is unclear whether he will go near monetary policy in his speech today, but if he does, any signs of greater confidence in the disinflation process could also hit the pound, ING strategist Chris Turner said.

Turner said his team expected to see sterling trade in the low 1.30s against the dollar in the medium term.

Sterling is typically more volatile than the likes of the euro and this week39;s ructions across the broader markets have hit the…