Sterling dips, currency markets look to the U.S. for cues

But the focus for currency markets on Wednesday was on moves in the United States.

"There is no UK data of note today once again, leaving cable (the pound/dollar exchange rate) to trade off this afternoon's U.S. releases, with Friday's Jackson Hole keynote still the next probable directional catalyst," said analysts at Monex Europe.

U.S. PCE, the Federal Reserve's preferred inflation gauge, is due at 1230 GMT, and could shape expectations for the Fed's interest rate path this year.

It will also set the scene for Fed Chair Kevin Warsh's speech on Friday at the important central banking conference, which past chairs have used as a high-profile platform to signal policy thinking or reinforce existing messages.

LONDON, Aug 26 (Reuters) - The pound dipped from its recent high against the dollar and also slid versus the euro on Wednesday, but with little in the way of major news from Britain, the currency was mainly shaped by broad risk sentiment and developments elsewhere.

Sterling shed 0.2% on the dollar to $1.3625, retreating from a six-month high of $1.3675 hit last week. It was at 85.61 pence against the euro, also a fraction softer on the day. GBP=, EURGBP=

The pound has performed reasonably well among major currencies this year, supported by a resilient UK economy and high British bond yields. These are particularly relevant when markets are calm, as currency markets are at present, as traders focus more on carry trades which profit from rate differentials.

It has gained just over 1% on the dollar and nearly 2% on the euro this year.