Sterling off one-week low vs dlr, eases vs euro

* Sterling flat against dollar at $1.9830, off one-wk low

* Trading seen subdued with no major data, U.S. closed

LONDON, July 4 (Reuters) - Sterling steadied against the dollar on Friday having plumbed a one-week low in the previous session but was seen trading in a narrow range given a lack of key data and with U.S. markets closed for a holiday.

UK data this week has been disappointing with a survey on Thursday showing the dominant services sector shrank in June at its sharpest rate since the aftermath of the September 11 attacks on the United States, raising fears about a recession.

Adding to the gloom, retailer John Lewis Partnership [JPL.UL] posted an 8.3 percent plunge in weekly department store sales, while an Ernst & Young study found the average British household was now 15 percent worse off than it was 5 years ago.

At 0736 GMT, sterling was little changed against the dollar at around $1.9830 <GBP=>, steadying after Thursday's slide to a one-week low of $1.9798.

The euro rose 0.1 percent to 79.20 pence <EURGBP=>, regaining its footing having fallen broadly on Thursday when markets trimmed expectations for more European Central Bank interest rate rises following comments from ECB President Jean-Claude Trichet.

"We continue to see a soft pound in the short-term, targeting euro/sterling at 80 pence in one month," said UBS currency strategist Geoffrey Yu.