22 November 2001, 13:58  : Sterling steady, eyes downside against dollar

Sterling was steady against the dollar and the euro on Thursday ahead of British economic data, but was showing a tendency to the downside against the resurgent U.S. currency, analysts said.
The euro was feeling the strain against the dollar after hitting three-month lows on weak German Ifo data and better- than-expected U.S. consumer confidence data in the previous session, and the pound was tracking the euro lower.
The Thanksgiving holiday in the United States on Thursday and a holiday in Japan on Friday were likely to dampen trade, dealers said.
"The data today is not likely to have much impact and trading will be quiet, with the U.S. out today and Japan out tomorrow," said Geraldine Concagh, economist at AIB Group Treasury in Dublin.
"But with the dollar rising on the Ifo and the U.S. data yesterday, the pound remains quite vulnerable."
The first revision to third quarter growth data, due at 0930 GMT, may show a downward revision to 0.5 percent from the preliminary 0.6 percent, according to a poll, giving an annualised rise of 2.1 percent.
The Confederation of British Industry's latest quarterly industrial trends survey is due at 1100 GMT.
Sterling was trading near the day's lows at $1.4154/59 and 61.95/62.00 pence at 0835 GMT, within half a percent of recent four-month lows against the dollar.
Technical analysts also said sterling was in danger of falling against the dollar.
"Sterling has failed to penetrate the $1.4225 resistance and is back under pressure," said Karen Jones, technical analyst at Commerzbank.
"Loss of $1.4150 undermines the market and we look for losses towards $1.4085, then $1.3955/25."

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