May 10, 2018 / 8:06 AM / a year ago

Sterling steadies before manufacturing data, BoE decision

* Graphic: World FX rates in 2018

* Graphic: Trade-weighted sterling since Brexit vote

LONDON, May 10 (Reuters) - The pound held steady on Thursday after its recent slump as traders readied for manufacturing and industrial output data and the Bank of England’s meeting on interest rates, where no change is expected.

Sterling has tumbled in recent weeks from its post-Brexit vote highs of close to $1.44 to below $1.35 versus the dollar, erasing its gains for the year, as investors unwound bets on a BoE rate increase and British economic data came in worse than expected.

At 0830 GMT, industrial and manufacturing data for March will be published. The BoE decision is scheduled for 1100 GMT.

“Bank of England is widely expected to leave policy unchanged on Thursday, with markets pricing minimal chance of a hike,” BNP analysts said.

“We expect the MPC (Monetary Policy Committee) to continue to signal a bias to hike further, consistent with our view that the next hike will come in August of this year.”

The pound traded flat at $1.3545 versus the dollar and slipped 0.1 percent to 87.600 pence per euro against the single currency. (Reporting by Tommy Wilkes, 3editing by Larry King)

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