LONDON, Sept 12 Reuters The British pound was steady on Thursday after hitting a threeweek low against the dollar the day before after data showed the UK economy stagnated in July, while focus turned to next week39;s key inflation print and central bank meeting.
Sterling was little changed on the day at 1.3052 and trading in a tight range, just above the 1.30025 it reached on Wednesday, its lowest since Aug 20.
Data on Wednesday from Britain39;s Office for National Statistics showed no change in economic output in July. A Reuters poll of economists had forecast a 0.2 monthonmonth expansion.
But while growth has stalled in Britain in recent months, the economy has still shown more robust growth than the euro zone since the beginning of the year.
If we look at the PMIs purchasing managers39; indexes, we continue to see downside surprises for the euro area whereas you look at Britain and there are continued top side surprises, said Kirstine KundbyNielsen, FX analyst at Danske Bank.
Against the euro , the pound was also little changed at 84.4 pence before today39;s European Central Bank ECBinterest rate decision, where a quarterpoint rate cut is widely expected.
Meanwhile, the Bank of England meets next week, and futures markets imply around an 80 chance that interest rates remain on hold, after a 25 basis point rate cut in August.
I think they will only deliver one more cut this year, Danske Bank39;s KundbyNielsen added.
That will play an important role and is set…