* 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
(Updates story, adds fresh quote)
By Ritvik Carvalho
LONDON, Feb 20 The pound rose against most major
currencies on Monday, snapping a three-day fall versus the euro
at the start of another week likely to be dominated by questions
about how Britain will leave the EU and the impact of Brexit on
The upper house of parliament, known as the House of Lords,
has begun debating the bill which will pave the way for the
formal start of talks on how Britain will leave the European
Opposition and independent members of the Lords are seeking
amendments to force the government to give more regular updates
on the divorce talks and to secure guarantees for the rights of
EU citizens living in Britain.
The pound was enjoying its best day since the start of the
month, up 0.5 percent against the dollar at $1.2472 and
0.3 percent higher at 85.16 pence per euro after
three days in the red.
"I think this is a bit of a correction after what was a
pretty negative week last week in terms of UK data," said ING FX
strategist Viraj Patel, referring to figures last week that
showed UK consumer confidence, especially, was stumbling.
There was more mixed data on Monday. Asking prices for UK
homes saw the smallest February rise since 2009, online property
site Rightmove said.
Meanwhile British manufacturers saw orders grow at the
strongest pace in two years, but the fall in the pound is making
them push up their prices sharply and is not having any obvious
benefit for exporters.
The pound, which was hammered after June's Brexit vote, has
drifted lower against the dollar since mid-January, when Prime
Minister Theresa May outlined her Brexit plan.
But it has climbed 4 percent against the euro during that
time, as the single currency faced its own strains from
political uncertainty in France, the Netherlands, Greece and
On Tuesday, the head of the Bank of England and its chief
economist will be questioned by a parliamentary committee, while
on Wednesday the UK statistics office will publish a revised
reading of fourth quarter GDP figures.
The pound was up 0.4-0.6 percent against the Swiss franc
and Japanese yen.
Sterling volatility gauges, which give
traders the options to bet on large swings in the pound,
remained subdued, having fallen in recent weeks, suggesting
markets expect little drama when Britain triggers Article 50 of
the EU's Lisbon Treaty to launch a two-year withdrawal period.
Speaking in Estonia, Brexit minister David Davis said the
end of March remained the likely timing for the move, while
May's spokesperson said there would be no U-turns once the exit
(Additional reporting by Marc Jones; Editing by Catherine