CORRECTED - Sterling hits 3-wk high vs ailing euro
(corrects 3rd para to show that UK consumer confidence data has already been released)
LONDON, May 30 (Reuters) - Sterling hit a three-week high against a pressured euro on Friday, with the single European currency hurt by soft euro zone data and a broad-based recovery in the dollar.
The domestic environment for the pound remained weak after data released overnight showed consumer confidence falling to its lowest level since 1990 [nL2635039], while figures on Thursday showed a record fall in UK house prices.
The UK GfK consumer confidence index deteriorated to minus 29.0 in May from minus 24.0 in April. Figures released from British retailer John Lewis showed department store sales down 2.8 percent in the week to May 24.
AIB Group Treasury economist Geraldine Concagh said that the moves seen in sterling versus the euro were being dictated by broader international factors including a broad-based recovery in the dollar and data pressure on the euro.
"In the UK, numbers seen over the last four days have done nothing to allay concerns about the outlook for the economy," she said.
"The Bank of England is in something of a bind, the econony is slowing but it's not in a position to cut interest rates because of high inflation. The mix of low growth and high inflation is undermining sterling," she added.
By 0745 GMT, sterling was down 0.1 percent on the day at $1.9735 GBP= after falling more than half a percent on Thursday to $1.9674, its lowest level in a week.
The euro was also down 0.1 percent at 78.41 pence, having earlier hit a three-week low at 78.31 EURGBP=, weighed by euro/dollar hitting its lowest in over 2 weeks EUR=. Continued...

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