* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
LONDON, Feb 8 (Reuters) - The pound was little changed on
Monday, slightly down against a stronger dollar, while analysts
were bullish on its outlook and latest positioning data showed
the overall speculative long position on the British currency
had increased.
The pound has strengthened against both dollar and euro in
February, boosted by heightened risk appetite in global markets,
optimism surrounding the UK's COVID-19 vaccine rollout and a
lessening of negative rates expectations.
The Bank of England (BoE) reported the findings of its
consultation with banks about the feasibility of implementing
negative rates last week.
Banks told the BoE that they would need at least six months
to work out how to respond to negative rates - prompting the
pound to rise as investors scaled back any expectations of the
policy being introduced.
Negative rates are "unlikely to happen over the next 6
months due to operational risks, while the need to go negative
after the 6-month period will be rather low as we expect a
strong 2Q economic recovery", wrote ING FX strategists Francesco
Pesole and Petr Krpata in a note to clients.
"Coupled with the fast vaccination, GBP is set to benefit
and GBP/USD to grind slowly higher next week," they said, adding
that they expect cable to move towards $1.50 by the end of the
year.
At 0845 GMT, the pound was down around 0.2% against a
stronger dollar at $1.3716.
Versus the euro, it was little changed at 87.72 pence per
euro.
Speculators' net long position on the pound got bigger in
the week to Feb. 2, according to weekly CFTC futures data. The
market has been net bullish on the pound since early December
2020, with the UK's relative success in vaccine
rollouts helping to lift sentiment.
Britain has injected over 12 million first doses of COVID-19
vaccines and is on track to meet a target to vaccinate everyone
in the most vulnerable groups by mid-February.
South Africa halted the rollout of AstraZeneca's COVID-19
vaccinations after data showed it gave minimal protection
against mild infection from one variant, but Britain said the
shot still stopped death and serious illness.
U.S. employment growth rebounded less than expected in
January and job losses in December were worse than initially
thought, prompting the dollar to dip but strengthening the
argument for additional government funding to aid the recovery
from the COVID-19 pandemic.
(Reporting by Elizabeth Howcroft, editing by Ed Osmond)
Astrazeneca (AZN)
