Stg under pressure again as UK retail sales loom

* Sterling falls vs euro, dlr ahead of UK retail sales

* Sales seen -0/9 pct m/m in Oct., reflecting weak economy

* Euro at 84.32 pence <EURGBP=>, pound at $1.4829 <GBP=>

LONDON, Nov 20 (Reuters) - Sterling weakened against the euro and dollar on Thursday, back under selling pressure after a few days of recovery as dealers expected a report later in the day will show a steep fall in UK retail sales.

October retail sales figures are expected to show a fall of 0.9 percent on the month, yet more evidence of the spillover to the so-called "real" economy from the global financial crisis.

The data will be released at 0930 GMT.

Against this backdrop -- and after Bank of England minutes on Wednesday showed policymakers considered slashing rates earlier this month by more than the 150 basis points ultimately delivered -- market-based UK rates expectations slipped too.

Interest rates traders now fully expect the BoE to cut rates a further percentage point next month to 2 percent and again in the following months to 1.50 percent, or maybe even lower.  Continued...