* Graphic: Sterling and gilt yields bit.ly/2dgAXn1
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv
By Ritvik Carvalho
LONDON, March 3 Sterling edged lower against the
dollar on Friday, trading just off a 6-week low ahead of an
industry survey expected to confirm a slowing in Britain's
dominant services sector ahead of the launch of European Union
exit talks this month.
Sterling has fallen sharply this week, breaking through
support around $1.24 and then $1.23 as data suggested investment
and the economy at large was finally beginning to slow in the
face of the aftermath of last year's Brexit vote.
Friday's survey of purchasing managers in the UK's services
sector will be closely watched for signs the sector that
contributes nearly 80 percent of the country's economic output
is slowing further.
A Reuters poll shows expectations of a dip in the
Markit/CIPS services PMI index to 54.1 after its first fall in
four months in January.
A survey on Thursday showed Britain's construction industry
picking up in February, but with the pace of new orders slowing.
"Today’s UK services PMI should prove an important market
mover, especially if details support the view of easing price
pressures as for instance seen with this week’s manufacturing
PMI," Credit Agricole AIB said in a note to clients.
"Any such indication would pressure medium-term inflation
expectations even further, supporting the view that the BoE can
stick to a dovish monetary policy stance for longer."
The pound traded 0.1 percent lower to the dollar at
$1.2255 at 0849 GMT. It was also lower 0.2 percent at 85.80
pence per euro.
Sterling has lost almost a fifth of its value since Britain
voted to leave to the European Union last June, with worries
about a fresh Scottish independence referendum and a dollar
boosted by U.S. interest rate hike expectations this week
pushing the pound to a six-week low on Thursday.
Prime Minister Theresa May is expected to lay into the
governing record of the Scottish National Party, which has a
majority in Edinburgh's devolved parliament and is considering
calling a fresh independence vote, in a speech in Glasgow on
(Editing by Toby Chopra)