The British pound gained slightly on Friday, adding to Thursday's rise off a three-week low against the dollar, as the focus shifted to next week's UK inflation data and central bank meeting. Sterling edged up on the day at $1.

UK public inflation expectations for the next 12 months are seen at 2.7% in August, a tad lower from a 2.8% forecast in May, the quarterly survey conducted by the Bank of England (BoE) and Ipsos showed on Friday. UK public inflation expectations for 12 months after that 2.6% (previous: 2.6%).

The British public's expectations for inflation over the coming year dropped to its lowest in three years, a Bank of England survey showed on Friday.