| LONDON, Sept 14
LONDON, Sept 14 Sterling steadied in early trade
in Europe on Wednesday after a more than 1 percent fall in the
previous session that reflected the currency's weakness in the
face of a wobble in debt markets and investors' appetite for
After a dip in inflation knocked the pound back on Tuesday,
employment data due at 0830 GMT will be looked to for further
signs of how the UK economy will hold up against the risks
generated by June's vote to leave the European Union.
The pound has broadly stabilised in the past month, trading
consistently above $1.30, but traders have begun to worry that
there will be more political noise about the upcoming Brexit
negotiations as leaders meet in Bratislava on Friday.
"It seems that sterling has become increasingly sensitive to
domestic data with more explosive movements expected as
investors ponder the impacts of Brexit," FXTM analyst Lukman
"Although the string of positive data in recent weeks
provided somewhat of a lifeline to sterling bulls, the lingering
Brexit anxieties continue to cap gains on the upside."
By 0707 GMT, the pound traded 0.3 percent higher at $1.3224.
It was also marginally higher against the euro at 84.90 pence,
having weakened to 85.33 pence per euro a day earlier.
The pound hit a seven-week high of $1.3445 a week
ago, more than 5 percent above the three-decade low plumbed in
July soon after the EU referendum, as investors trimmed record
short positions against the currency.
But since then, with the head of the Bank of England leaving
the door open to more monetary easing, and with Brexit
negotiations back in the headlines after the British parliament
returned from recess, sterling has shed almost 2 percent.
The labour data is expected to show wages continuing to grow
faster than inflation, but still shy of levels that would
provide a more lasting boost to inflation that might stay the
BoE's hand on further easing of monetary policy.
Brexit minister David Davis said on Monday that Britain will
make its guidelines for talks on leaving the European Union
public by the time it triggers the formal exit process, in the
first indication of when Britons will find out what the
government hopes to achieve in the talks.
(Editing by Raissa Kasolowsky)