* Sterling gains on housing, GDP data
* Euro gains capped by options, fiscal concerns linger
* Worries about Greece, Ireland linger
* U.S. consumer confidence number awaited
(Adds comment, details, U.S. data. updates prices, changes byline)
By Steven C. Johnson
NEW YORK, March 30 (Reuters) - Sterling rose on Tuesday as data showed the UK economy growing a bit more swiftly than expected while the euro surrendered earlier gains against the dollar and yen amid worries about euro zone fiscal health.
Britain's currency was on track for its best day against the dollar in nearly two weeks after revised GDP data showed the economy grew 0.4 percent in the fourth quarter. A separate report showed UK house prices rose in March. [ID:nLAG006193]
The pound rose 0.8 percent to $1.5094
The euro fell 0.1 percent to $1.3465
The dollar was up 0.1 percent at 92.61
Greek plans to reopen a 20-year bond issue added to worries about its funding needs while news that Ireland would take a bigger stake in the banking sector than planned raised concern, limiting euro gains. [ID:nLDE62T0XV] and [ID:nLDE62T0BL]
Greece sold 5 billion euros of seven-year debt on Monday, its first foray into the capital markets since the euro zone agreed last week to an emergency financial aid program for the country, but spreads between Greek bonds and benchmark German bunds widened on Tuesday, suggesting investors remain worried.
"Last week's deal means it's unlikely you'll see a Greek default, but that doesn't mean we won't have concerns about the ability of Greece or other peripheral euro zone countries to fund their deficits," said Michael Malpede, analyst at Easy Forex in Chicago. "That is going to hurt the euro."
Market participants said the euro's upside was capped around $1.3500, where as much as 1 billion euros' worth of options were reportedly set to expire at 1400 GMT.
The Australian dollar rose to its strongest level in more
than a week at $0.9215
Markets showed little reaction to data showing prices for U.S. single family homes rose for the eighth straight month in January [ID:NYS007876].
Malpede said markets would be more attentive to U.S. consumer confidence data due at 10 a.m. (1400 GMT), especially ahead of Friday's employment report that's expected to show the economy added 190,000 new jobs in March.
"With equity markets at 18 month highs, people are looking for something that gives momentum to recovery optimism, and that means consumer confidence will be important," he said.
Some analysts say that if U.S. non-farm payrolls data due on Friday is strong it may boost the dollar as this would suggest the Federal Reserve may need to raise interest rates later this year.
(Additional reporting by Naomi Tajitsu in London; Editing by Chizu Nomiyama )