LONDON, Aug 05, 2010 (AFP) - The euro and sterling advanced against the dollar on Thursday as the market awaited interest rate calls from the ECB and Bank of England, while the US currency also dipped versus the yen. In late morning trading here, the European single currency firmed to 1.3197 dollars from 1.3155 dollars late on Wednesday in New York. Sterling climbed to 1.5896 dollars from 1.5878 dollars on Wednesday. With eurozone interest rates set to stay at a record low of 1.0 percent, the European Central Bank could urge banks again on Thursday to boost lending and nurture economic growth. The Bank of England is meanwhile set to keep its key lending rate at an all-time low 0.50 percent amid expectations that Britain's economic recovery will stall. Elsewhere on Thursday, the dollar failed to extend gains against the yen after better-than-expected US data gave the greenback a lift in New York, dealers said. Against the Japanese currency, the dollar dipped to 86.22 yen from 86.26 yen on Wednesday. The greenback had earlier this week plummeted to eight-month lows around 85 yen on jitters about the pace of recovery in the US. A report showed Wednesday that the US services sector grew faster than expected in July, offering hope for a key sector of the world's largest economy. Another batch of data showed the world's biggest economy created more private jobs than expected in July. Payrolls firm ADP said 42,000 private-sector jobs were made in July following a revised June number of 19,000, in a report ahead of key government data Friday on payrolls and unemployment. "Friday's jobs data is important... If it turns out to be bad, it would prompt the FOMC to discuss additional monetary-easing measures," said Hideaki Inoue, senior dealer at Mitsubishi UFJ Trust and Banking, referring to the Federal Open Market Committee. The market has been rife with speculation that the US Federal Reserve may step up quantitative easing measures -- pumping money into the economy through the purchase of assets -- to prevent growth from slowing. The policy-setting FOMC will meet on Tuesday amid concerns of possible deflation. In trading in London, the euro changed hands at 1.3197 dollars against 1.3155 dollars on Wednesday, at 113.79 yen (113.50), 0.8302 pounds (0.8283) and 1.3815 Swiss francs (1.3856). The dollar stood at 86.22 yen (86.26) and 1.0470 Swiss francs (1.0530). The pound was at 1.5896 dollars (1.5878). On the London Bullion Market, the price of gold fell to 1,196.47 dollars an ounce from 1,199.50 dollars an ounce on Wednesday.

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