FOREX-Sterling nurses losses as next Brexit hurdle approaches

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Brexit twists and turns confound investors
* Euro steady before Ifo survey
* Dollar/Yen eyes Fed, BOJ meetings next week

By Stanley White
TOKYO, Oct 25 (Reuters) - The pound nursed losses versus the
dollar and the euro on Friday after Prime Minister Boris
Johnson's call for an election heightened uncertainty over
Britain's divorce from the European Union.
The British currency is likely to remain fragile ahead of a
meeting later on Friday where European Union officials may
decide how long they will extend Britain's deadline to leave the
EU beyond the current date of Oct. 31. At this stage, an election looks unlikely because the main
opposition Labour Party has withheld its support and other
opposition parties have rejected the offer. However, the twists and turns of the Brexit process have
proved too complex to predict, which is likely to discourage
some investors from taking on excessive risk before the EU
agrees a new deadline for the Britain's departure from the bloc.
"We're constructive on sterling in the mid-term, because we
don't see a high chance for a general election," said Osamu
Takashima, head of G10 FX strategy at Citigroup Global Markets
Japan in Tokyo.
"My personal concern is once political uncertainty lifts,
people will focus more on the UK's economy, which is weakening.
This could be a negative for sterling."
The pound GBP=D3 gave up 0.1% to $1.2845 in Asia on
Friday. For the week, sterling was on course for a 1.14% decline
versus the greenback, its biggest weekly loss since Sept. 27.
Sterling traded at 86.46 pence per euro EURGBP=D3 , on
course for a 0.42% weekly decline.
Opposition Labour leader Jeremy Corbyn said he would wait to
see what the EU decides on a Brexit delay before deciding on a
general election.
However, Corbyn also repeated he could only back an election
when the risk of Johnson taking Britain out of the EU without a
deal to smooth the transition was off the table.
The euro EUR=EBS held steady at $1.1103 in Asia on Friday,
on course for a 0.62% weekly loss.
The Ifo economic institute's closely-watched measure of
German business sentiment due later on Friday is expected to
weaken slightly in October, highlighting fears that Europe's
largest economy is slipping into recession pressured by the
U.S.-China trade war and Brexit.
The European Central Bank left monetary policy unchanged on
Thursday after unveiling a big stimulus package last month, but
there are concerns the ECB's firepower has largely been spent.
The dollar index .DXY against a basket of six major
currencies was little changed at 97.696 but up 0.43% on the
week. The U.S. currency held steady at 108.65 yen JPY=EBS , on
course for a 0.21% weekly advance.
The focus shifts next week to a U.S. Federal Reserve meeting
ending Oct. 30 and a Bank of Japan meeting ending Oct. 31.
The Fed is expected to cut interest rates for a third time
this year, but fixed income analysts say this is largely priced
into the market. The BOJ is leaning toward keeping policy on hold next week,
but the decision is a close call as policymakers struggle with
the fallout from the U.S.-China trade war.