(Reuters) - The euro fell to its lowest in three weeks against sterling, dragged down before Spain presents its 2013 budget and by uncertainty over whether the country will request a bailout.
Data showing the UK economy shrank by slightly less than previously thought in the second quarter also helped the pound, as well as talk that EU farm subsidy payments to the UK due this week will lift sterling against the euro.
The euro fell around 0.5 percent to 79.245 pence, marking its weakest since September 6. More losses could see it target the 55-day moving average at 79.09 pence and the Sept. 5 low of 78.87 pence. (Reporting by Jessica Mortimer; editing by Anirban Nag)
