* 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 Ritvik Carvalho
LONDON, March 7 Sterling fell to a seven-week
low against the dollar on Tuesday, ahead of a second vote in
Britain's upper house of parliament on legislation giving Prime
Minister Theresa May the right to start formal Brexit talks.
Britain's House of Lords will on Tuesday try to force the
government to give lawmakers a greater say over the terms of
Britain's exit from the EU and final approval of an eventual
deal with the bloc.
The government is set to lose the vote though ministers are
determined to overturn any chances before they become law.
Britain needs to trigger "Article 50" to launch formal
negotiations with the EU, and expects to do so this month.
The pound fell 0.3 percent to $1.2202, its lowest
level since Jan. 17. It also weakened 0.3 percent to a
seven-week low of 86.71 pence per euro.
"The run up into the triggering of Article 50 is having a
negative impact (on sterling), as have some of the recent data
confirming a deceleration in growth in the first quarter of the
year," said Stephen Gallo, currency strategist at BMO Capital
Markets, adding that he thought politics was affecting the
currency more than fundamentals.
Sterling has lost nearly a fifth of its value against the
dollar since the shock Brexit vote last June.
Analysts say that the currency has largely been driven by
domestic politics, but is increasingly under pressure from data
suggesting Britain's economic resilience after the referendum -
seen driven largely by consumer spending - may have been
British consumers are cutting back on non-essential spending
as the impact of last year's Brexit vote pushes up the cost of
their day-to-day shopping, two surveys showed on Tuesday.
Analysts at MUFG said the pound had started reacting less to
"The pound has become less sensitive to Brexit developments
so far this year, which has included PM May's keynote speech
outlining more details of the government's Brexit negotiation
strategy," they wrote in a note to clients.
"We continue to doubt that the ongoing process to soon
trigger Article 50 will have a material negative impact on the
pound in the near-term."
(Editing by Richard Lough)