LONDON: Sterling climbed on Friday, awaiting surveys of Britain's manufacturing and service sectors which will give investors their first glimpse of business activity after the shock vote to leave the European Union.
The purchasing managers' surveys will gauge the initial impact on the economy from the EU referendum result after data on Thursday showed the biggest monthly decline in British retail sales for six months in June.
Sterling was 0.1 percent higher against the dollar at $1.3240 while the euro was 0.15 percent lower at 83.25 pence. The euro zone PMIs for July are also due and expected to show the economy brushed off the impact of Brexit.
Forecasts are for a slight growth in Britain's manufacturing sector but a contraction in the services sector.
"If the PMI indices come in below estimates, I would expect the pound to come under selling interest again and initially target the $1.3070 support zone," said Charalambos Pissouros, senior analyst at IronFX Global.
Sterling has been supported in the past few days by hawkish comments from BOE policymakers. Kristin Forbes said on Thursday the central bank should not rush to cut interest rates, mirroring comments from Martin Weale who also said this week he was unsure if he would back a rate cut at next month's meeting.
The BoE said last week that most of the nine members of its Monetary Policy Committee expected to give the economy more help at their next meeting, which ends on Aug. 4. But two of them seem to favour waiting and watching.
On Wednesday, the pound got a boost from a BoE survey that showed no clear evidence of slowing activity after the Brexit vote.
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