By James Amott and John Beresford-Peirse
London, Dec. 6 (Bloomberg) -- The British pound, which has fallen 5.2 percent against the dollar this year, was little changed before a U.K. industrial-production report traders will be watching to gauge the extent of slowdown in the economy. Sterling was trading at $1.4155, compared with $1.4149 last night. Against the euro, it was at 62.67 pence, compared with 62.65. The pound is down 4 percent against the dollar and 1.4 percent against the euro this quarter.
Signs the economy is looking more robust than expected may benefit the pound by making British financial assets more appealing, while a weaker report may weigh on the U.K. currency. Economists surveyed by Bloomberg News predict a report at 9:30 a.m. London time will show production was probably unchanged in October from September.
``The markets will be looking to the numbers, but whether it'll have any positive impact on sterling is debatable,'' said Peter Stoneham, a senior currency analyst at Thomson Global Markets. The pound's tendency to follow the euro's moves against the dollar may also decide sterling's direction in coming days, he said.
The pound tends to follow the euro because Britain sells more than half its exports to the 12 countries that share the common currency, and because of speculation Britain may adopt the euro in the next few years, analysts said.
``The pound doesn't seem to have an identity at the moment -- it just follows the euro,'' he said. The U.K. currency should be stronger because the economy looks in better shape than many of the world's other major economies, he said.
Forecasts from the Organization for Economic Cooperation and Development have suggested growth in Europe's second- biggest economy will outpace expansion in the U.S. and 12 nations sharing the euro in coming months. Figures today from HBOS Plc, Britain's largest mortgage- lender, showed U.K. house prices rose 2 percent in November, or 11.5 from a year ago. Sterling was little changed after the report.