Dec 16 Reuters Sterling rose against the dollar and euro on Monday as a survey of business activity pointed to a rise in prices in Britain and as investors braced for a string of central bank meetings this week, including the Bank of England on Thursday.

British businesses this month cut staff numbers at the fastest pace in almost four years, raised prices and turned more pessimistic about the outlook, a survey showed on Monday.

The preliminary SP Global Flash Composite Purchasing Managers39; Index held at 50.5 in December, remaining just above the 50.0 line that separates growth from contraction, but below expectations in a Reuters poll of economists for a rise to 50.7.

The pound rose as much 0.52 against the greenback on Monday , and recuperated some of last week39;s losses, when the currency tumbled and hit its lowest point since Nov. 27 on Friday at 1.2607 after data showed that the British economy shrank unexpectedly in October.

At 1100 GMT the currency had pared some of those gains, up 0.31 against the dollar at 1.2647.

The pound also strengthened against the euro , with the single currency down 0.28 to 82.96 pence.

Kirstine KundbyNielsen, FX research analyst at Danske Bank, said markets focused on the sticky price components in the PMI data.

Price indices are higher across the board indicating some continuous stickiness in price setting, a key concern for the BoE, KundbyNielsen said.

Prices charged by firms rose at the steepest pace in nine months as…