* Sterling down 0.2 percent at $1.5436 GBP= * Dollar firm on expectations for strong U.S. payrolls LONDON, Jan 7 (Reuters) - Sterling fell to its lowest against the dollar since the start of the year on Friday as the greenback gained on expectations for robust U.S. jobs data and as the pound was hurt by sluggish economic data this week. With few domestic data and events scheduled, focus was squarely on U.S. non-farm payrolls, with analysts raising their forecasts after a strong private sector jobs report earlier in the week. Economists now expect non-farm payrolls in December to have increased by 175,000, the fastest pace in seven months and up from 140,000 in an earlier Reuters survey. The data is due out at 1330 GMT. "Some numbers in excess of 200,000 have been bandied about, and in the event this does happen, then we can expect the U.S. dollar to push higher against the major currency pairs," said Michael Hewson, analyst at CMC Markets. By 0826 GMT, sterling fell as low as $1.5407 GBP=D4, its lowest since Dec. 30. It was last down 0.2 percent at $1.5436. CMC's Hewson said a sustained move below $1.5400 should open up the $1.5265 area, which remained the key longer-term target as this level was the 50 percent retracement of the pound's rebound from its low in May 2010 to highs in November. There was also trendline resistance around $1.5660, he said. Sterling had taken a hit after weaker-than-expected services sector and construction PMIs this week clouded the UK economic outlook, although some said the figures were not that surprising given adverse weather last month. Robust U.S. data had also prompted a 1 percent fall in the sterling/dollar pair on Wednesday. The pound held steady against a broadly weaker euro which was hurt by euro zone peripheral sovereign risks. Macro funds were seen selling euro/sterling the previous day, traders said. It was flat on the day at 84.06 pence EURGBP=D4. The December lows of 83.50 pence were seen as a possible target, while the technical outlook for the euro was weakened by Wednesday's move below the 200-day moving average at 84.85 pence, traders said. "Sterling continues to have an upper hand against the euro," one London-based trader said. Trade-weighted sterling stood at a two-week high of 80.4 =GBP. (Reporting by Tamawa Desai; Editing by Susan Fenton)

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