Sterling recovers vs dlr, euro in short-covering

* Sterling recovers from one-week low vs dollar of $1.6515

* Stg recovers from two-week low vs euro * Strategic demand, short covering boost sterling

* Sentiment still negative after BoE chief's QE comment

By George Matlock

LONDON, Nov 13 (Reuters) - Sterling recovered some of its one-week losses against the dollar and two-week losses against the euro on Friday as traders covered short positions in the UK currency.

The pound pulled back from its multi-week nadir hit after Bank of England Governor Mervyn King earlier in the week suggested a weak currency would help the UK economy recover. Despite its recovery on Friday, analysts said sentiment towards the currency remained negative.

"There is a small reversal in favour of sterling this morning but sterling has been and will remain volatile because of the continued uncertainty on the British economy and monetary policy," said Geraldine Concagh, economist at AIB Group Treasury in Dublin.

Few fundamental factors were driving sterling, given a lack of UK economic data and events. Meanwhile, euro zone gross domestic product data failed to give euro/sterling direction ECON.