RTRS:Stg falls versus dlr, tracks euro before UK data
* Sterling retreats versus dollar, tracks euro falls
* Consumer credit, mortgage data at 0930 GMT eyed
* PMI data later this week key for signals on UK economy
LONDON, Oct 29 (Reuters) - Sterling fell against the dollar on Monday, tracking falls in the euro on uncertainties over Greece and Spain as markets awaited UK lending data at 0930 GMT.
The figures are expected to show a small rise in consumer credit and mortgage lending.
Any impact on the pound is expected to be limited, although very strong data may help pare back expectations of more easing from the Bank of England and lift sterling.
The pound made solid gains last week on better-than-expected UK third quarter growth figures, but there are doubts about whether the UK can weather the headwinds from a troubled Europe, it's largest trading partner, and sustain steady growth.
Sterling was down 0.3 percent at $1.6061, off a peak of $1.6144 reached last week.
It tracked a drop in the euro, which was pressured by uncertainty over whether Greece can agree to a deal on austerity while Spain continued to hold out on requesting a bailout.
"We are not expecting any huge movement in sterling today. The focus is going to be on Hurricane Sandy and how that effects movement in the dollar that would pass into cable (sterling/dollar)." said Lee McDarby, head of dealing for corporate and institutional treasury at Investec.
Hurricane Sandy has forced hundreds of thousands of people on the U.S. East Coast to flee their homes and shut the U.S. stock market.
He added Purchasing Managers Index (PMI) figures on manufacturing and construction activity to be released later this week would be more important. These will give an initial indication of whether the strong momentum from the third quarter continued into the fourth.
"If we do see a potentially strong PMI, that can really help to boost the pound, as we have seen happen before," he said.
The euro was steady at 80.30 pence, edging away from Friday's fall to 80.02 pence which was its weakest since early October.
Sterling outperformed other currencies last week after stronger-than-expected Q3 growth forecasts showed the UK had climbed out of recession and reduced the probability of the Bank of England opting for further quantitative easing in November.
