Stg touches three-week low vs euro, economy weighs

* Sterling down 0.1 percent vs euro at 79.76 pence <EURGBP=>

* Negative view on economy, housing sector weighs

* Services PMI data awaited for clues on UK economy

LONDON, July 3 (Reuters) - Sterling fell to three-week lows against the euro on Thursday and also lost ground versus the dollar as the currency was weighed by a bleak outlook on the UK economy.

The pound has been pressured this week as retailer and housebuilders' shares slumped on Wednesday, adding to concerns about the health of the UK economy.

Bank of England policymaker Kate Barker highlighted these concerns on Wednesday, telling the Lincolnshire Echo that Britain's housing and construction sectors are facing great difficulty [ID:nL03143256].

However, given the extent of the negative news on the UK economy, analysts say the pound has held up surprisingly well.

"There's been a steady flow of bad data that has continued to weigh on the pound but it has held up remarkably well," said David Pais, currency strategist at Citi.