Sterling holds steady before US data, nursing Tuesday’s heavy loss

LONDON, Jan 3 (Reuters) – The pound held steady on Wednesday, nursing the previous day’s steep losses as investors waited for U.S. economic data that could shift markets. Sterling was last flat against the dollar at $1.2624, after falling 0.87% the previous day in its biggest one-day drop since mid-October. It was slightly higher against the euro, with the single currency down 0.15% at 86.57 pence. Investors returned from the holiday period with doubts in their minds about the euphoria of November and December, when falling global inflation and softer words from central banks fuelled hopes that interest rates will drop sharply this year. The dollar jumped on Tuesday to around a two-week high and the pound and euro slumped,…