* Euro/dlr <EUR=> down more than 1 pct
* GDP data confirms single currency zone in recession
* Weaker equity moves dampen risk demand
* Investors eye G20 meeting in Washington
(Adds quotes, updates pries, changes byline, changes
dateline, previous LONDON)
By Wanfeng Zhou
NEW YORK, Nov 14 (Reuters) - The U.S. dollar and the yen
rose against the euro on Friday as a gloomy global economic
outlook added to worries on Wall Street, raising investor
demand for safe-haven assets.
Adding to pressure on the euro was data confirming that the
euro zone is in its first ever technical recession. The gloomy
news followed Thursday's German growth data showing two
consecutive quarters of contraction in the zone's biggest
economy.
The dollar briefly extended losses versus the yen as risk
aversion rose following worse-than-expected retail sales data.
But the pair has since rebounded after Federal Reserve Chairman
Ben Bernanke said central banks are ready to do more to ease
credit strains and support economic growth.
"The retail sales data was definitely weaker than
expected, both on the overall number and excluding autos," said
Dustin Reid, senior currency strategist at RBS Global Banking &
Markets in Chicago. "I still think the negative correlation
between equities and the dollar is the main trading theme."
"As for Bernanke's comments, I don't see a whole lot there
that hasn't been said already. Central banks being ready to
ease more is pretty obvious and markets have priced that in,"
Reid added.
In early New York trading, the euro <EUR=> was 1.4 percent
lower on the day at $1.2653, nearing a two-week low of $1.2387
hit on Thursday.
The single European currency <EURJPY=> also struggled
against the low-risk, low-yielding yen, falling 2.3 percent to
122.01 yen.
The euro zone economy contracted 0.2 percent for the second
time in a row quarter-on-quarter in the July-September period,
an official estimate showed [].
Against the yen, the dollar <JPY=> fell 1.2 percent to
96.45.
G20 EYED
Traders said deleveraging and risk aversion would continue
to dominate sentiment in volatile trade as G20 nations gather
in Washington on Friday.
Analysts were wary on prospects for the event to yield
major changes in the international financial structure, which
would likely keep investors away from taking on risky positions
and continue to boost the dollar and the yen.
"Markets are likely to be disappointed by the G20 meeting
as the statement is unlikely to deliver much more than a call
for a broad fiscal policy response without any specific
measures or targets," currency strategists at BNP Paribas wrote
in a note.
Sterling continued to hover near a record low against the
euro hit the previous day as investors are convinced a
recession in the UK will be more severe than in the euro zone.
The pair traded at 85.69 pence <EURGBP=>, near an all-time high
of 86.62 pence.
Sterling suffered across the board, hovering near a 6-1/2
year low against the dollar <GBP=> of $1.4555 hit on Thursday.
(Additional reporting by Steven C. Johnson and Veronica
Brown in London; Editing by Chizu Nomiyama)
