* Cable drops against dollar after two days of gains * Off a one-week high of $1.5601 as risk appetite suffers * Pound edges up against struggling euro LONDON, June 8 (Reuters) - Sterling retreated from a one-week high against the dollar on Friday as demand for safe-haven currencies like the greenback revived on worries about slowing global growth, although losses were checked as it advanced against the struggling euro. Riskier currencies came under pressure after the U.S. central bank offered no hint of imminent monetary stimulus. Even the Bank of England opted not to extend its asset purchase programme a day after the European Central Bank put the onus on politicians to resolve the worsening euro zone debt crisis. There was also talk that economic data from Asian powerhouse China at the weekend could be weak and the interest rate cuts on Thursday were meant to preempt the grim news. All these factors would keep sterling subdued in a $1.5250-$1.5600 range, traders said. "It looks like the risk rally has run its course for now," said Adrian Schmidt, FX strategist, at Lloyds TSB. "Cable (sterling/dollar) got hurt by the Spanish downgrade and of course you have the Greek elections coming up next week. For now, it is very much a ranged trading for cable between $1.5250 and $1.5600." Sterling was down 0.6 percent against the dollar at $1.5442, off a one-week high of $1.5601 struck on Thursday when bets were growing that the Fed would signal more quantitative easing (QE) and give a boost to risk appetite. The currency also got a lift from the Bank of England's (BOE) decision not to opt for more QE although expectations of further easing remained on the table as the UK struggles with a deeper-than-expected recession. UK factory gate inflation slowed to its lowest rate in more than two years, though a BoE survey showed on Friday Britons expect prices to climb at a faster rate over the coming year than three months ago. That could give the bank less leeway to ease monetary policy in coming months. BOE policymakers have said more QE could be on the way if the situation in the euro zone deteriorates. Fitch cut its rating on Spain's government debt to BBB, two notches short of "junk" status, and placed the country on "negative outlook", citing contagion risks from the Greek crisis. Two European Union sources and one German source said Spain was expected to make an aid request for its banks this weekend and a conference call of euro zone finance ministers on Saturday will discuss the details. The pound was slightly higher against the euro. The single currency eased to 80.79 pence, having risen as high as 81.31 pence on Thursday. This had taken it close to a one-month peak hit earlier this week. Many analysts expect the pound to continue to gain against the euro in the medium term as investors seek alternatives to euro zone assets as the situation in Europe worsens. Apart from Spain's banking sector problems, investors fear a victory for anti-reform far-left parties in Greece's parliamentary election next weekend could push that debt-laden country towards a chaotic exit from the euro zone. BNP analysts have recommended investors sell the euro against the pound targeting a drop to 78 pence in coming months. They expect the ECB to lower rates in coming months while the pound is expected to benefit from its status as a safe haven within Europe.

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