* 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
LONDON, March 27 Sterling surged almost 1
percent to a seven-week high against the dollar on Monday,
gaining with other major currencies after the failure of a
Republican healthcare bill weakened faith in U.S. President
Donald Trump's other campaign promises.
At the start of a week set to include Britain's formal
request to leave the European Union, the pound gained 0.8
percent compared to Friday's close on Reuters' broad sterling
quote page, hitting $1.2580, its highest since Feb. 9.
The pound was also up 0.2 percent at 86.42 pence per euro
and dealers said record high bets lodged against
sterling in recent weeks had helped it outperform currencies
including the Australian and New Zealand dollars against their
"The legislative setback for the Trump administration has
brought into question the 'Trump reflation trade'," analysts
from Credit Agricole said in a morning note.
"The yen (was) the strongest performer in G10 FX (and) the
euro and sterling were the next best ... as the most popular
long dollar positions got squeezed."
(Reporting by Patrick Graham and Jemima Kelly)