London, Feb. 3 (Bloomberg) -- The British pound may fall against the dollar for the first week in ten amid speculation that signs of stronger growth will boost stocks in the U.S., increasing demand for the currency to buy them. ``We could see some shorter term strength in the dollar,'' said Sabrina Jacobs, a strategist at Dresdner Bank AG. The pound traded at $1.6453 at 6:41 a.m. in London, from 1.6448 late Friday. It rose 0.7 percent against the U.S. currency last week and has gained 16 percent in the past 12 months. Against the euro the pound was at 65.28 percent, compared with 65.24 in late trading Friday. U.S. manufacturing probably expanded for a third straight month in January, a report today will probably show. The Institute for Supply Management's factory index is expected to ease to 54, from a revised 55.2 in December, based on the median of 49 forecasts in a Bloomberg News survey. A reading of more than 50 signals improving conditions. The report is due at 3 p.m. London time.
Stocks futures rose after the Standard & Poor's 500 index and Dow Jones Industrial Average added more than 1.3 percent on Friday, paring this year's declines. U.S. companies generated their biggest revenue gains in almost two years in the fourth quarter, according to Bloomberg data. The National Association of Purchasing Management-Chicago's January factory index published last week rose to 56, the highest since last May. The index has shown growth in 10 of the past 12 months. //www.quote.bloomberg.com