* 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, April 6 Britain's pound edged lower
against the dollar on Thursday, as investors saw uncertainty
surrounding Britain's departure from the European Union
outweighing some signs of economic resilience.
The pound bounced on Wednesday on stronger-than-expected
services data, which gave investors a sign Britain's dominant
services sector -- key to its economy -- was still thriving.
But it reversed some of those gains on Thursday, as
investors took the view that until either Britain or the EU
shows signs of softening their negotiating stances, Brexit would
be negative for the British economy.
Sterling was off 0.1 percent at $1.2479 by 0902
GMT. It was also 0.1 percent lower at 85.85 pence per euro.
"The moment I'll turn my view around and turn materially
long on sterling is when I know the European Union is willing to
give Britain a good deal on services -- financial services to be
more specific," said Jordan Rochester, currency strategist with
"Confidence on both sides is pretty firm, so the initial
talks are going to be slow and it's not until mid-May when those
talks start so we're a good six weeks away from them."
Sterling has lost nearly a fifth of its value against the
dollar since Britain voted to leave the EU last June.
Since then, investors have broadly stayed bearish on the
currency despite initial signs of resilience from the economy
that confounded expectations of a slowdown, worried about
long-term uncertainty surrounding Brexit.
Speculators took their bets against the pound versus the
dollar to record high levels last month, and although they have
since trimmed those short positions, they remain close to those
European Council President Donald Tusk will meet British
Prime Minister Theresa May in London on Thursday.
The EU's chief negotiator, Michel Barnier, on Wednesday
insisted that Britain must stop pressing for immediate parallel
talks with the bloc on a post-Brexit free trade deal, and first
agree on withdrawal terms.
Investors are now eyeing the EU summit on April 29, where EU
directives for Brexit negotiations will be ratified.
"The ebb and flow of Brexit negotiations looks well
underway, with PM May seemingly softening some of the red lines
(e.g. free movement) during a transition period post-Brexit. Yet
cable (sterling/dollar) could well trade well within $1.23-26
for a couple more weeks," ING strategists wrote in a note to
(Reporting by Ritvik Carvalho Editing by Jeremy Gaunt.)