Nov 27 Reuters Sterling rose against the dollar and was little changed versus the euro on Wednesday, with investors focused on the market reaction to U.S. Presidentelect Donald Trump39;s tariff promises.

Markets will closely watch the U.S. economic data later in the day, which could affect the Federal Reserve39;s easing path.

The greenback fell to a oneweek low as investors grew cautious about Trump39;s tariff pledges while rebalancing their portfolios before the end of the month.

The pound rose 0.3 to 1.2612 . It hit 1.2484 last week, its lowest level since May 9.

Analysts flagged that expectations for a hawkish stance by the Bank of England and possible U.S. tariffs against the euro area will be supporting the pound versus the single currency.

However, if the trade conflict escalates, there are risks for the British currency as the global economy will slow down.

The BoE39;s Clare Lombardelli said on Wednesday that Trump39;s proposed tariffs would also pose a risk to growth in the UK.

Sterling was flat versus the single currency at 83.41 pence per euro .

With oneweek deposit rates at 4.75, the highest in the G10 space, sterling may be deriving inflows as the market makes up its mind about the speed and magnitude of Trump39;s policy agenda, said Chris Turner, head of forex strategy at ING.

The BoE39;s Lombardelli made the case for only gradual reductions in interest rates on Monday.

On the UK, we fundamentally remain convinced that the UK economy would have…