Sterling bounces off late-2017 lows against dollar

Sterling bounced off December 29 lows in American trade to settle anew above 1.35 against the dollar, following a basket of data from Britain and the US, and ahead of Fed Governor William Dudley's speech later today. 

As of 05:02 GMT, GBP/USD rose 0.25% to 1.3541 from the opening of 1.3540, with a session-high at 1.3555, and a two-week low at 1.3458.

Earlier from the UK, the Bank of England released its credit conditions statistics, while Prime Minister Theresa May's spokesman asserted the country won't have a second Brexit referendum contrary to reports that called for it

Otherwise, earlier US data showed producer prices dipped 0.1% m/m in December, the first such decline since July, missing expectations of a 0.2% rise, while analysts expected a 0.4% increase. 

Core prices, excluding food and fuel, fell 0.1% as well, missing expectations of a 0.2% increase, and compared to November's 0.3% rise. 

US unemployment claims rose to 260 thousand in the week ending January 6 from 250K, the second weekly increase in a row, while analysts expected a drop to 246K. 

Continuing claims fell 35 thousand to 1.867 million from 1.902 million in the week ending December 23, while analysts expected 1.920M. 

The overall disappointing data cut chances of a Federal Reserve rate hike in March, and the bets of three hikes this year similar to 2017.