* Sterling year-to-date graphic tmsnrt.rs/2egbfVh
By Patrick Graham
LONDON Oct 14 Sterling traded just over a cent
above this week's lows against the dollar and steadied against
the euro on Friday, with several Bank of England policymakers
due to speak and markets keen for clues on whether another cut
in interest rates is likely.
The pound has found a foothold after a round of heavy losses
this week, sparked by last Friday's tumble, but some investors
are still prepared to back it to recover much of that ground.
European Council President Donald Tusk, who will run the
Brussels side of Britain's negotiations on leaving the EU,
warned on Thursday that the bloc will not offer London any
softer terms than a "hard Brexit".
Worries about the economic fallout of Britain losing access
to the single market under such a scenario are at the heart of
the pound's decline in the past three weeks.
The Bank of England has already cut interest rates and
relaunched quantitative easing in a bid to offset any damage to
growth over the next year.
BoE governor Mark Carney and several colleagues appear at a
Future Forum in Birmingham on Friday.
"We are heading into crunch time for the pound as the
various parties stake out negotiating positions, so we would
expect news flow to remain rather challenging in the near-term,"
BNP Paribas analysts said in a morning note.
"(But) our positioning framework suggests short positioning
in GBP is getting increasingly stretched."
By 0720 GMT, sterling was flat at 90.24 pence per euro
and just under half a percent weaker against a
broadly stronger dollar at $1.2196.
"The pound is soft but stable this morning, trading
marginally above 1.22 as it feels the brunt of the dollar,"
Western Union head of corporate treasury sales, Tobias Davis,
"The lead today will be taken from the (United) States and
broader global risk sentiment."
(Editing by Louise Ireland)