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Sterling steadies above $1.32 as traders eye manufacturing PMI

* Graphic: sterling and gilt yields http://bit.ly/2dgAXn1

* Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, Aug 1 (Reuters) - Britain's pound edged down from a 10-month high on Tuesday as traders awaited the latest numbers from the manufacturing sector, though the currency stayed above $1.32 as political turmoil drove broad dollar weakness.

A purchasing manager's index (PMI) survey for the manufacturing sector was due at 0830 GMT. It will be closely watched by investors for signs that Britain's economy is continuing to lose steam after slowing in the first half of the year.

The Bank of England, which makes a policy decision and releases its latest quarterly Inflation Report on Thursday, is also looking out for signs of further cooling in the economy, as it weighs up whether to lift interest rates from their record lows in the coming months.

For a Reuters graphic on views of the Monetary Policy Committee's members, click on: http://tmsnrt.rs/2eSYykb

A run of weak data has - along with deep uncertainty about the impact of Brexit on the economy - cooled speculation that the BoE is poised to start removing its crisis-level stimulus, which followed a series of hawkish remarks by policymakers at the banks in recent months.

But while that push-back of rate hike expectations has helped drive the pound to nine-month lows against the euro , it has not been enough to outweigh pessimism around the U.S. dollar.

Sterling hit a ten-month high of $1.3235 in Asian trading, before easing back to trade at $1.3207 by 0755 GMT, down 0.1 percent on the day.

Against the euro, it was 0.2 percent higher at 89.48 pence, still close to last week's low of 89.94 pence.

"It will take an exceptional amount of BoE dovishness to justify levels comfortably above 90 pence in the euro against sterling this week," wrote BMO strategists in a research note.

Investors added to bets against the pound in the week up to last Tuesday, data showed on Friday, having taken them to their lowest in sixteen months the previous week.

"While it appears global sentiment has turned more positive on sterling, conviction levels are low," wrote Deutsche Bank strategists in a note to clients on Tuesday.

"This is consistent with IMM data. We don't see positioning as a major obstacle to another bout of pound weakness." (Editing by Raissa Kasolowsky)