Sterling steadies vs dollar; down vs euro

* Sterling up 0.1 percent at $1.5985 GBP=

* Euro up 0.6 pct at 89.76 pence EURGBP=R

* Sterling weighed by BoE minutes, weak GDP number

LONDON, Dec 24 (Reuters) - Sterling steadied against the dollar on Thursday after hitting two-month lows this week as the greenback broadly softened, but the pound was mired near one-week lows against the euro hit the previous day.

Weaker-than-expected U.S. housing data on Wednesday cut a dollar rally short, while dollar-buying from year-end positioning had likely ended, traders said.

"Most market players have finished their pre-Christmas trading yesterday, and dollar repatriation has run its course. So we're seeing some buying back of euro and sterling against the dollar," one trader said.

But higher U.S. bond yields were likely to underpin the greenback, he added.

At 0854 GMT, sterling was up 0.1 percent at $1.5985 GBP= after briefly rising to $1.6013.

Traders said it may be difficult for the pair to recover the 200-day moving average which was seen at around $1.6025. The euro was up 0.6 percent at 89.76 pence EURGBP=D4, not far from a one-week high of 90.00 pence hit on Wednesday.

Sterling had been weighed down after a disappointing revision to third quarter UK growth figures, and as minutes from the latest Bank of England policy meeting were perceived as having left the door open to further monetary easing.

The BoE's Monetary Policy Committee voted unanimously in December to keep interest rates at 0.5 percent and maintain the 200 billion pound quantitative easing (QE) programme, as expected. [ID:nLDE5BM0JP]

The QE programme is scheduled to be completed before the BoE publishes its next inflation forecasts in February.

"It appears the Monetary Policy Committee is still not willing to totally shut the door on expanding QE if necessary," analysts at UBS said in a note.

UK markets will be closed on Friday for Christmas Day. (Reporting by Tamawa Desai; Editing by Toby Chopra)