UK retail sales fail to lift sterling gloom

(Updates prices, adds reaction to UK retail sales, quote)

* Sterling's bounce vs euro, dlr after UK retail sales fades

* Surprisingly buoyant data fail to alter UK econ, rate view

* Euro at 84.37 pence <EURGBP=>, pound at $1.4843 <GBP=>

LONDON, Nov 20 (Reuters) - Sterling weakened against the euro and dollar on Thursday as the market bet that surprisingly resilient UK retail sales won't be enough to slow the pace of interest rate cuts widely expected in the coming months.

Official data on Thursday showed British retail sales fell by only 0.1 percent in October from the previous month, far less than the 0.9 percent decline eocnomists had forecast.

Other data showed that Britain's public finances were in deficit in October for the first time since 1994. [ID:nLK280751].

Sterling got a brief lift on relief the retail sales weren't as gloomy as expected. But currency dealers saw that bounce as a more attractive selling opportunity and at 1050 GMT the pound was back down toward its session lows.  Continued...