Sterling jumps vs broadly weak euro, outlook grim

* Euro down 1.1 percent at 82.74 pence <EURGBP=>

* Broad pressure on single currency as inflation tumbles

* UK Nov retail sales slump to record low - CBI

LONDON, Nov 28 (Reuters) - Sterling jumped against a broadly weaker euro on Friday, with the single currency facing pressure as tumbling euro zone inflation left room for aggressive European Central Bank rate cuts next week.

Provisional figures showed euro area annual inflation plunged to 2.1 percent in November from 3.2 percent in October [ID:nBFA000814].

But sterling was on the backfoot against the dollar along with other major currencies, with dealers citing a large amount of end-month dollar buying interest centred around the 1600 GMT London currency fixing.

A slight easing in extreme risk aversion this week has allowed sterling some breathing space from investor deleveraging, leaving the pound on track for its biggest weekly percentage gain since late 2006.  Continued...