* 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 Marc Jones
LONDON, Feb 21 Sterling fell against the dollar
but made ground versus the euro on Tuesday, before Bank of
England Governor Mark Carney and a number of his chief
lieutenants testify in Britain's parliament.
The pound has been relatively steady compared with last
year's slump, but recent data suggest that consumer confidence
may be starting to falter as inflation rises and Britain's
negotiations to leave the European Union come closer.
Early trading saw the pound give back some of the gains it
had made on Monday. It fell 0.3 percent to $1.2423,
though it fared better against the euro at 84.91 pence
as nerves about Marine Le Pen's popularity in France
kept pressure on the shared currency.
Britain's upper house of parliament was holding a second day
of debate over Brexit, but Carney's appearance at a separate
committee, alongside the BoE's chief economist and two other
policymakers, was the bigger focus.
"We expect BoE officials to stick to their neutral stance,
but there may be a little more emphasis on the negative risks,
especially with CPI (inflation) not having risen quite as much
as feared," said ING's head of FX strategy Chris Turner.
Public debt figures were also published, with pressure
expected to remain on Britain's borrowing levels.
Revised fourth-quarter gross domestic product
figures are due on Wednesday.
Political risk remains the principal driver for the pound,
though, and is expected to intensify once formal Brexit
negotiations start, probably in April.
While the currency has risen around 4 percent against the
euro and the likes of the Japanese yen since mid-
January, it has been steadily drifting down again against the
Analysts at Commerzbank said it was consolidating near its
55- and 100-day moving averages of $1.2415/07. A drop below
those levels could pave the way for a fresh slide back to
mid-January's lows of $1.2253 or even $1.1983.
"We maintain a negative bias (on the pound) but patience is
needed," said Commerzbank's Karen Jones.
(Reporting by Marc Jones, editing by Larry King)