Sterling pares gains vs dollar after U.S. data

* Sterling pares gains vs dollar after weak U.S. jobs data

* Still close to 2-week high after BoE upped QE funds * Focus moves to BoE Inflation Report on Wednesday

LONDON, Nov 6 (Reuters) - Sterling pared gains against the dollar on Friday as a weaker-than-expected U.S. jobs report left investors more averse to risk and offset the boost to the UK currency from the previous day's Bank of England decision.

However, the pound stayed not far from a two-week high against the dollar hit after the central bank on Thursday increased its quantitative easing programme by 25 billion sterling, less than the 50 billion rise many had forecast.

The top-up to QE broadly supported sterling, particularly as many in the market believe this will be the last.

But the pound pared gains after closely-watched U.S. data showed the economy lost 190,000 jobs in October, slightly more than forecast, while the jobless rate rose to a 26 1/2 year high of 10.2 percent from 9.8 percent.

The data, particularly the rise in the headline unemployment rate above 10 percent, dented investors' appetite for risk, weighing on perceived higher risky currencies, such as sterling.

"People went into the U.S. jobs numbers in a positive frame of mind and they leapt on the unemployment rate, given concerns about the psychological impact of this number on consumer confidence," said Gavin Friend, currency strategist at nabCapital.