FOREX-Dollar, yen rises on weak data, equities

* Euro/dlr down more than 1 pct

* GDP data confirms single currency zone in recession

* Weaker equity moves dampen risk demand

* Investors eye G20 meeting in Washington

(Adds quotes, updates pries, changes byline, changes dateline, previous LONDON)

By Wanfeng Zhou

NEW YORK, Nov 14 (Reuters) - The U.S. dollar and the yen rose against the euro on Friday as a gloomy global economic outlook added to worries on Wall Street, raising investor demand for safe-haven assets.

Adding to pressure on the euro was data confirming that the euro zone is in its first ever technical recession. The gloomy news followed Thursday's German growth data showing two consecutive quarters of contraction in the zone's biggest economy.

The dollar briefly extended losses versus the yen as risk aversion rose following worse-than-expected retail sales data. But the pair has since rebounded after Federal Reserve Chairman Ben Bernanke said central banks are ready to do more to ease credit strains and support economic growth.

"The retail sales data was definitely weaker than expected, both on the overall number and excluding autos," said Dustin Reid, senior currency strategist at RBS Global Banking & Markets in Chicago. "I still think the negative correlation between equities and the dollar is the main trading theme."

"As for Bernanke's comments, I don't see a whole lot there that hasn't been said already. Central banks being ready to ease more is pretty obvious and markets have priced that in," Reid added.

In early New York trading, the euro was 1.4 percent lower on the day at $1.2653, nearing a two-week low of $1.2387 hit on Thursday.

The single European currency also struggled against the low-risk, low-yielding yen, falling 2.3 percent to 122.01 yen.

The euro zone economy contracted 0.2 percent for the second time in a row quarter-on-quarter in the July-September period, an official estimate showed [nLE565143].

Against the yen, the dollar fell 1.2 percent to 96.45.

G20 EYED

Traders said deleveraging and risk aversion would continue to dominate sentiment in volatile trade as G20 nations gather in Washington on Friday.

Analysts were wary on prospects for the event to yield major changes in the international financial structure, which would likely keep investors away from taking on risky positions and continue to boost the dollar and the yen.

"Markets are likely to be disappointed by the G20 meeting as the statement is unlikely to deliver much more than a call for a broad fiscal policy response without any specific measures or targets," currency strategists at BNP Paribas wrote in a note.

Sterling continued to hover near a record low against the euro hit the previous day as investors are convinced a recession in the UK will be more severe than in the euro zone. The pair traded at 85.69 pence , near an all-time high of 86.62 pence.

Sterling suffered across the board, hovering near a 6-1/2 year low against the dollar of $1.4555 hit on Thursday.

(Additional reporting by Steven C. Johnson and Veronica Brown in London; Editing by Chizu Nomiyama)

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