LONDON, Aug 25 - The euro traded in a narrow range in Europe on Friday, within sight of four-month lows set last week against the dollar, with activity subdued by a holiday in London markets. Analysts said the euro was being undermined by the view that U.S. and Japanese economies would perform better than those of the euro zone and that the single currency had most to lose from a sustained shift out of bonds and into equities. The euro was trading at $1.0871 at 0655 GMT, slightly below the U.S. close and less than half a cent below four-month lows set on Friday. It was at 127.86 yen , half a yen below five-month lows set on Friday.
The euro was trading at 69.00 pence , against six-week lows of 68.86 pence set on Friday. August inflation data from the German states of Bavaria, Brandenburg and North Rhine-Westphalia is expected later on Monday.//