Sterling gains vs dlr after Greek vote; BoE risks seen ahead

(Adds quote, updates prices)
* Sterling strengthens vs dollar as Greece approves
austerity
* Euro steady vs pound, concerns on Greek deal
implementation
* Investors wary before BoE inflation report on Weds

By Nia Williams
LONDON, Feb 13 (Reuters) - Sterling rose against the
dollar on Monday, benefiting from rising risk appetite after
Greece's parliament approved an austerity bill, bringing the
country closer to securing a second bailout and avoiding a
chaotic default.
The pound could give up those gains, however, if the risk
rally falters on doubts over whether Greece can cope with more
austerity. Violent protests in Athens overnight fuelled concerns
that Greek politicians may struggle to implement reforms.
Sterling was last up 0.3 percent at $1.5784,
retreating from a session high of $1.5827 but still buoyed by
improved risk appetite, which also lifted the euro, riskier
currencies and equities.
Technical resistance to sterling gains was seen at the Feb.
8 high of $1.5929 and the 200-day moving average around $1.5928.
"The pound's next move will be dominated by global risk
appetite more than anything that happens in the UK," said Kit
Juckes, currency strategist at Societe Generale.
"It remains a safe haven alternative to the euro and is a
beneficiary of dollar weakness."
The euro EURGBP-D4 was flat at 83.72 pence, within sight
of Friday's high of 84.06 pence. Just above there is the late
January high of 84.09 pence, which is the euro's strongest since
late December.
The UK currency was expected to be kept in check ahead of a
Bank of England inflation report on Wednesday that may give
clues on the likelihood of more monetary easing.
The BoE last week pumped another 50 billion pounds into the
economy to try to stimulate growth under its quantitative easing
(QE) programme. Although the central bank sounded a little less
pessimistic about the economy, investors were wary of building
bullish bets before Wednesday's report.
"It looks like pressure is on the pound until we get through
the Inflation Report on Wednesday morning," said Lee McDarby,
head of corporate dealing at Investec Bank.
"It wouldn't be surprising to see more QE from the Bank of
England in the months ahead."
Morgan Stanley analysts told clients that they aimed to sell
sterling at higher levels towards $1.5960, with a target of
$1.5460, given the prospect of further QE and the UK's large
exposure to the euro zone.
Inflation data on Tuesday will also be key and is expected
to show a further dip in UK price pressures in January.
Lower inflation would make it easier for BoE policymakers to
justify further monetary easing as their forecasts have shown
prices dropping back sharply from highs hit last year.

CBI SEES UK RECOVERY
The jury is out over whether recent improving UK economic
data, such as last week's purchasing managers' surveys, means
the BoE asset purchase programme is drawing to a close.
The Confederation of British Industry (CBI), a leading UK
business lobby, forecast on Monday that Britain's economy would
gather pace in the second half of the year and that further
quantitative easing would not be needed.
Contrasting with the CBI's view, a Reuters poll conducted
after the BoE announced more QE last Thursday forecast the bank
would opt for another round of stimulus in May.
Data from the Commodity Futures Trading Commission showed
speculators increased bearish bets on sterling in the week to
Feb. 7, which analysts said was probably due to wariness about
the risk of more QE before last Thursday's policy decision. Net
short euro positions were pared back though they remained at
high levels.

(Additional reporting by Jessica Mortimer; Editing by Susan
Fenton)