Sterling nears 4-month high versus weaker dollar
* Sterling buoyed vs dollar, helped by euro gains
* Euro lifted as German court says will not postpone ruling
* Dollar also weaker on prospect of more monetary easing
* UK trade data at 0830 GMT, little impact expected on pound
LONDON, Sept 11 (Reuters) - Sterling rose against the dollar on Tuesday, nearing a four-month high as it tracked gains in the euro on expectations a German court will back a euro zone bailout fund in a ruling due this week.
Anticipation of more monetary easing from the Federal Reserve also weighed on the dollar, helping the pound rise 0.2 percent to $1.6017, bringing it close to Friday's peak of $1.6035.
But sterling fell against the euro after Germany's constitutional court said it would not postpone its ruling on the legality of the euro zone's bailout fund, due on Wednesday, despite a last-minute legal challenge by a eurosceptic lawmaker.
The euro was up 0.2 percent at 79.91 pence, hovering close to a two-month peak of 80.11 pence reached on Monday.
The euro has performed well since the European Central Bank unveiled a bold plan last week to lower borrowing costs of peripheral euro zone countries.
Strong rhetoric by the ECB in recent weeks has diminished the role sterling played earlier this year as a safe haven for investors seeking alternatives to the single currency during a deepening euro zone debt crisis.
"The factors weakening the euro and strengthening sterling have waned in the last few weeks," said Simon Smith, economist at FXPro.
UK trade data for July is due at 0830 GMT and is not anticipated to have much impact on sterling. It is expected to show the UK's trade deficit shrinking but staying at a high level.
"The trade data won't be a massive mover for sterling but it is of note given the UK is not moving towards a situation where net trade is making a positive contribution to the economy," FXPro's Smith said.
However, there have been some signs that the UK economy has been faring less badly recently and may emerge from recession, with data last week showing a pick-up in industrial production.
A survey by the Royal Institution of Chartered Surveyors on Tuesday showed UK house prices fell at a slower pace in August.
Foreign exchange market participants are expected to focus on the German constitutional court ruling as well as a Federal Reserve decision on Thursday. Expectations the Fed will announce additional monetary easing, which would weigh on the dollar, have been rising after weak U.S. jobs data last week.
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