FOREX-Pound down, others flat before ECB, BoE decisions

(Changes dateline, byline, updates prices, adds quotes)

By Simon Falush

LONDON, Jan 10 (Reuters) - Sterling fell broadly on Thursday on growing concerns about the health of the economy and growing prospects of a rate cut but other major currencies held steady ahead of rate decisions by the Bank of England and the ECB.

The balance of expectations has swung marginally in favour of a 25 basis point cut from the BoE to 5.25 percent but the European Central Bank is widely expected to keep rates on hold at 4 percent.

Investors will also closely scrutinise comments from ECB President Jean-Claude Trichet at the press conference following the decision, to see whether he will maintain his hawkish line.

For the BoE, markets are pricing in a roughly two-in-three chance of a rate cut, up from about a 30 percent chance at the end of last week.

"There has been weakness in the pound as expectations of a rate cut have moved sharply up after weak retailer trading statements and poor consumer confidence data," said Michael Klawitter, currency strategist at Dresdner Kleinwort in Frankfurt.

The euro rose to a fresh all-time peak against the pound <EURGBP=> as high as 75.14 pence. Sterling fell as low as $1.9542 <GBP=>, a 10-month low.

Sterling fell further on Wednesday after Marks & Spencer (MKS.L: Quote, Profile, Research), Britain's largest clothing retailer, reported unexpectedly weak sales, stirring talk that weak consumption could lead to a sharp economic slowdown.