* Graphic: sterling and gilt yields bit.ly/2dgAXn1
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv
By Jemima Kelly
LONDON, March 6 Sterling slipped to a seven-week
low against the euro on Monday, weakened by uncertainty over
when the formal mechanism for Britain's departure from the
European Union would be triggered, as well as a run of weak UK
The British parliament's upper house will on Tuesday try to
force the government to give lawmakers a greater say over the
terms of Brexit, when they vote on the wording of legislation
that gives Prime Minister Theresa May the right to trigger
Tuesday's vote will also demand that both houses of
parliament be asked to approve any decision to leave the bloc
without a deal if talks fail.
But regardless of Tuesday's outcome, May's Brexit bill will
then be passed back to lawmakers in the lower house for
approval, because last week it was amended to add a condition on
protecting the rights of EU citizens in Britain.
It will then be passed back and forth until both houses
agree on the final wording of the bill - a process that has no
time limit, but will not begin until March 13.
ING currency strategist Viraj Patel said investors would
rather Brexit were triggered sooner, now they had got used to
the idea it is inevitable.
"Markets want to see the triggering of Article 50 sooner
rather than later, because then they get clarity over
uncertainty," he said. "Markets are now more focused on the
MUFG currency economist Lee Hardman, however, said sterling
had become less sensitive to political developments. Its
movements during the past two weeks - when it lost almost 2
percent against the dollar and over 1 percent versus the euro -
had more to do with developments in the United States and
Europe, he said.
"At least for now the sensitivity to Brexit news for the
pound has diminished ... and a lot of the bad news is in the
price," he said.
Sterling slipped to 86.69 pence per euro, its
weakest since Jan. 19, in early trade in Europe.
By 1735 GMT, though, it had recovered to 86.54 pence. It was
still down 0.1 percent on the day, but the pound benefited from
news that former French prime minister Alain Juppe would not run
in France's presidential elections. Investors saw that as making
a victory by the far-right Marine Le Pen slightly more likely
than with Juppe in the race, which weakened the euro.
Against the dollar, sterling fell 0.6 percent to $1.2230
, close to a seven-week low, with the greenback boosted
by revised expectations for when U.S. interest rates will rise.
Investors are now pricing in an 87 percent chance rates will
rise in March, Reuters data show.
(Editing by Larry King)