Sterling steady near recent highs on dollar and euro

LONDON, Dec 29 (Reuters) - The pound held steady against both the dollar and the euro in thin holiday trading on Monday with little in the way of scheduled events that could move the currency until the new year.

Sterling was last up 0.07% on the dollar at $1.35091, a touch below the three-month high it hit last week.

It was also a fraction firmer on the euro at 87.12 pence to the common currency, again just shy of last week's levels, the pound's strongest since October.

Trading has been thin around the Christmas holiday period in Britain, and remains so in the run-up to the New Year holiday.

That has left sterling still largely shaped by the Bank of England meeting earlier in December.

The BoE cut interest rates after a narrow vote by policymakers, but it signalled that the already gradual pace of lowering borrowing costs might slow further.

Should that materialise, that would see the pound remain supported versus other currencies, particularly the dollar, with the Federal Reserve expected to continue easing next year.

Manufacturing activity data due on Friday will give the next indication of the state of Britain's economy. Important inflation and employment data are not due until well into January.

(Reporting by Alun John; Editing by Andrew Heavens)