UPDATE 2-FTSE 100 ends second week down on virus woes, pound strength

(There will be no London market report on Monday, Aug. 31 due
to the bank holiday.)
* Sterling above $1.33 for first time in 2020
* Greggs slips on report COVID-19 outbreak closes Leeds
depot
* FTSE 100 down 0.6%, FTSE 250 up 0.2%
* BOE has more ammunition to support economy - BOE's Bailey

(Adds comments, updates prices to close)
By Sagarika Jaisinghani and Shreyashi Sanyal
Aug 28 (Reuters) - London's FTSE 100 index closed its second
week lower on Friday as traders headed into the long weekend
worried about a choppy post-pandemic economic rebound, while
Greggs slipped on a report a COVID-19 outbreak had forced it to
close its depot in Leeds.
The exporter-heavy FTSE 100 .FTSE was down 0.6%, also
pressured by the sterling which touched an eight-month high as
the dollar fell in the aftermath of a speech by Federal Reserve
Chairman Jerome Powell.
Historic global stimulus has helped UK equity markets in
their fourth monthly increase in five, but the pace of gains has
slowed as economic data points to a slower-than-expected
recovery from a pandemic-induced slump.
"As markets have turned decidedly more risk-on, correction
fears are mounting," Barclays analysts wrote in a note.
"A pullback is of course possible, but we remain of the view
that the unwind of the massive flight to safety seen
year-to-date is likely closer to the beginning than the end."
Bank of England Governor Andrew Bailey said the central bank
has more ammunition to support the economy and that big,
aggressive bond-buying pushes are most effective when crises
strike.
Britain's mid-cap FTSE 250 .FTMC rose 0.2%, with
homebuilders .FTNMX3720 leading gains.
Earlier, Japanese financial markets fell after news that
Prime Minister Shinzo Abe will resign for health reasons.
MKTS/GLOB
"The surprise announcement made a lot of headlines, but it
didn't have a huge impact on stocks in Europe," said David
Madden, market analyst at CMC Markets UK.
"Things have been a little directionless today, partially
because there has been a lack of local news, but it is likely
that UK-based traders are winding down ahead of the long
weekend."
Baker Greggs GRG.L shed 1.6% as the report said its
distribution centre had been temporarily closed for a deep clean
after an undisclosed number of staff tested positive for
COVID-19.