Sterling steadies vs dollar, consolidates after payrolls

* Sterling little changed, hovers near 1-wk low vs dollar * Market consolidates after ECB, US payrolls

* UK June services PMI slips but remains in growth territory

LONDON, July 3 (Reuters) - Sterling steadied on Friday as traders took some profits following its losses the previous day, when dismal U.S. payrolls increased risk aversion and pushed the pound to a one-week low versus the dollar.

Market participants said trade was thin in the aftermath of the much-anticipated employment figures and an interest rate meeting by the European Central Bank on Thursday, while many U.S. markets were closed for the Independence Day holiday.

The pound offered little reaction to data showing a slight fall in activity in the UK services sector, as the figure remained in growth territory [ID:nLAG003582].

Sterling was driven by moves in the dollar, and traders were had been seen closing out long positions taken on the U.S. currency in the lead-up to the payrolls, which had stung the pound.

Analysts said traders would likely be in consolidation mode on Friday, while adding that the market would be focussed on economic fundamentals next week, which sees more economic data and a policy announcement by the Bank of England.

"We have had so much to digest this week with the non-farm payrolls and the ECB meeting," said Audrey Childe-Freeman, currency strategist at Brown Brothers Harriman.