* Dollar index down 0.1 percent; risk sentiment intact
* Sterling hits 9-mo high after strong services PMI, output data
* Canada dollar tumbles further after finmin warning
* Eyes on U.S. ADB jobs report
(Recasts, adds details, updates prices)
By Tamawa Desai
LONDON, Aug 5 (Reuters) - The dollar was pressured on Wednesday after hitting a 10-month low earlier in the week as risk sentiment remained intact, though many investors took to the sidelines ahead of key events later in the week.
The dollar had fallen sharply against a number of currencies this week as risk-taking was heightened after brighter manufacturing activity data and rises in U.S. equities, with many players expecting more risk to the dollar's downside.
Sterling rose to a nine-month high against the dollar after data showed strong UK services sector and industrial production data. That came after data on Monday showed manufacturing activity posted growth for the first time since March 2008.
"With the manufacturing index also having moved above 50 earlier this week, at face value these indicators point to positive UK GDP growth in Q3," said Adam Cole, global head of FX strategy at RBC Capital Markets.
But the euro was little changed against the dollar, showing muted reaction to purchasing managers' indices for euro zone services sectors, which generally showed improvement in July.. Traders also brushed off a bigger-than-expected fall in retail sales in the region in June.
By 1137 GMT, the euro was up slightly on the day at $1.4421, near $1.4445 hit on Monday, its highest since December.
The dollar index was down 0.1 percent at 77.631, not far from 77.451 hit on Monday, its lowest since September.
Sterling rose to $1.7029, its highest since mid-October.
The New Zealand dollar also rose to $0.6754, its highest since early October.
But many players were dearth to actively trade ahead of policy decisions by the Bank of England and European Central Bank due on Thursday, and U.S. nonfarm payrolls on Friday.
A Reuters poll last week showed economists are split whether the BoE will extend its quantitative easing programme, although recent brighter UK economic data are seen reducing such chances. But analysts said it could still not be completely ruled out.
"It would be a brave investor that held on to an aggressively long sterling position into the BoE meeting with that risk looming," Daragh Maher, deputy head of FX strategy at Calyon, said in a note.
Traders will also keep an eye on the ADP employment report which is expected to show 345,000 jobs were lost in the month, versus a loss of 473,000 in June.
Also due later in the day is the U.S. ISM non-manufacturing survey for July.
Meanwhile, the Canadian dollar extended losses against the U.S. dollar in the wake of comments by Canadian Finance Minister Jim Flaherty, who said on Tuesday steps could be taken to dampen the Canadian dollar's rise.
The Canadian dollar fell to C$1.0785 on Wednesday, after hitting a 10-month high of $1.0632 on Tuesday prior to Flaherty's comments.
The dollar was flat at 95.30 yen, showing little reaction to China's central bank saying it would keep a close eye on currency moves and make the yuan more flexible.