Sterling/dlr hits 2-wk low before UK jobs, BoE report

LONDON, Aug 12 (Reuters) - Sterling hit a two-week low against the dollar on Wednesday, adding to losses as investors awaited a reading of UK employment and the Bank of England's Inflation Report later in the day.

The pound GBP=D4 fell roughly half a percent on the day to around $1.6400, its weakest since the end of July.

It also fell against the euro EURGBP=R which rose 0.2 percent to 86.05 pence according to Reuters data, near a two-week high of 86.15 pence touched on Tuesday.

UK labour market data due later in the day is expected to show that the unemployment rate rose to 7.7 percent in June from 7.6 percent in May. The claimant count is seen at 25,000 in July, up from 23,800 in the previous month.

The BoE's Inflation Report is likely to show a deeper recession than was factored in before, with inflation likely to remain below the 2 percent target over a two-year horizon.

(Reporting by Naomi Tajitsu)