Sterling holds onto gains on dollar, awaits data

LONDON, Dec ‌11 (Reuters) - Sterling held onto its gains against a dollar pressured ‍by ‌the Federal Reserve but slipped against a resurgent euro on Thursday, ⁠as the British currency took ‌its cues from broader market moves ahead of key domestic economic data.

Monthly GDP data is due on Friday, and that, along with next week's labour ⁠market and inflation data, will set the tone for the Bank of England's rate decision, ​also due next week.

Markets currently see a rate ‌cut as all but certain, ⁠with economic growth sluggish and inflation cooling from elevated levels.

Analysts at Barclays said in a Thursday note that while they anticipate ​the data will meet the bar for a rate cut, "the uncertainty inherent in this means we will continue to monitor releases closely for signs of material additional strength."

The Bank of England's rate setting ​committee ‍held rates steady last ​month in a tight 5-4 vote split, but Barclays said they expect governor Andrew Bailey to change his vote this time.

Ahead of all that, there were few domestic drivers for the pound.

Versus the dollar it was flat at $1.2288, having gained 0.65% on Wednesday as the dollar ⁠fell across the board after the Federal Reserve cut rates and offered an outlook for 2026 ​that was not as hawkish as some had expected. [FRX/]

The euro, meanwhile, has been supported by markets starting to wonder if the European Central Bank may hike rates at some point ‌late next year, and the common currency was up 0.17% on the pound at 87.51 pence.

(Reporting by Alun John, Editing by William Maclean)