Sterling supported after BoE, focus on U.S. jobs

* Sterling inches up, holds gains after BoE ups QE funds * Market speculates 25 bln pound QE top-up may be the last * Pound up vs broadly weak dollar, market awaits U.S. jobs

LONDON, Nov 6 (Reuters) - Sterling inched up on Friday, holding gains a day after a Bank of England decision to increase its quantitative easing programme by 25 billion pounds wrong-footed some expectations for a bigger increase.

The pound traded close to a two-week high against a broadly weak dollar. Optimism that U.S. employment data due later may show a slowing pace of jobs losses stoked some risk appetite and prodded the safe-haven U.S. currency lower.

A 25 billion pound increase in the BoE's asset-buying plan on Thursday was less than some forecasts for 50 billion pounds. This supported sterling, analysts said, while the move was seen by some to be the final top-up of the BoE's QE programme.

"The market's interpretation of the BoE decision was that quantitative easing is nearing the end of the road, and that monetary policy has a degree of finality to it," said Jeremy Stretch, strategist at Rabobank in London, adding that this helped keep the UK currency bid.

Traders braced for the influential U.S. payrolls figures, the market's main event for the day, which are due at 1330 GMT. Before that, UK producer prices for October due at 0930 GMT were seen offering a snapshot of wholesale inflation.

By 0842 GMT, sterling GBP=D4 had edged up 0.1 percent to $1.6615, not far from $1.6637 hit on Thursday, its highest since Oct. 23. The euro EURGBP=D4 slipped nearly 0.2 percent to 89.52 pence.

Sterling is poised to end the week little changed against the euro and up more than 1 percent against the dollar.