June 11, 2018 / 8:16 AM / 2 months ago

Sterling rises ahead of manufacturing data and big week for Brexit talks

* Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv

LONDON, June 11 (Reuters) - Sterling rose against the dollar on Monday ahead of UK manufacturing data that is expected to show a recovery in the sector after a weak first quarter.

The pound’s gains were limited, however, and traders said the British currency was expected to move sideways until a British parliamentary vote on amendments to Britain’s EU withdrawal bill takes place on Tuesday.

Brexit headlines have returned to dominate sterling trading in recent days, with the EU chief negotiator last week questioning Britain’s “backstop” proposals to deal with the Irish border issue - a sticking point in moving forward negotiations for Britain and the EU’s divorce.

“We expect a fairly neutral pound trading today ahead of the tomorrow’s UK Parliament vote on amendments of the EU withdrawal bill,” ING analysts said, predicting that a loss of one of the votes could lessen the chances of a “hard” or disorderly Brexit and help sterling.

The British currency climbed 0.1 percent to $1.3424 but below last week’s highs of $1.3472. Against the euro the pound fell 0.2 percent to 87.93 pence per euro.

Manufacturing data due at 0830 GMT is expected to show a 0.3 percent rise in April, according to a Reuters poll of economists, better than the fall of 0.1 percent in the previous month. (Reporting by Tommy Wilkes; Editing by Angus MacSwan)

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