* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
(Updates prices, adds additional comment)
By Ritvik Carvalho
LONDON, April 26 (Reuters) - Sterling gained against the
dollar and the euro on Monday, ignoring political noise stemming
from allegations against Britain's Conservative government as
positioning data showed investors still bullish on the currency.
Prime Minister Boris Johnson is facing a stream of newspaper
allegations about everything from his muddled initial handling
of the COVID-19 crisis to questions over who financed the
redecoration of his official apartment.
Defence Secretary Ben Wallace has denied a report that
Johnson said he would rather bodies piled "high in their
thousands" than order a third social and economic lockdown to
stem coronavirus infections.
Asked last month about the refurbishment plans, Johnson's
spokeswoman said all donations, gifts and benefits were properly
declared, and that no party funds were being used to pay for the
refurbishment.
Bets on an economic rebound have fuelled sterling's rise
against the dollar and euro this year as Britain's COVID-19
vaccination programme outpaced its peers. The country is
emerging from a third national lockdown, and is preparing for
the second phase of lifting restrictions.
The pound gained against the dollar for a second week on
Friday, helped by better than expected economic data that
indicated Britain's economy may be rebounding from its worst
annual contraction in 300 years.
By 1452 GMT, sterling was 0.15% higher on Monday at $1.3901
, off last week's top of $1.4009. Against the euro it
was 0.2% higher at 86.92 pence.
"The political noise surrounding sleaze allegations against
the Conservative government have yet to do any real damage to
GBP and instead the focus will be on early indications on the
pick-up in activity as the economy reopens," said Chris Turner,
global head of markets at ING.
Net speculative long positions on sterling - or the total of
market bets the pound will increase in value to the dollar -
slipped marginally in the week up to last Tuesday, CFTC data on
Friday showed. The market still remains long on the pound.
"We think net long positions on the pound are here to stay
thanks to the upbeat expectations on the UK recovery that have
been fuelled by fast vaccinations and looser virus containment
measures," ING's FX strategist Francesco Pesole said in a note
to clients.
"We're still quite bullish on sterling," said Dean Turner,
chief eurozone and UK economist at UBS, over a conference call.
"We have cable (sterling/dollar) going as high as $1.51 by
March next year and we think that appreciation will be quite
gradual...this comes against a broader trend of a weaker U.S.
dollar which we believe the foundations are still in place for
that to happen as the economic recovery takes hold."
Bank of England Deputy Governor Ben Broadbent has forecast
consecutive quarters of rapid growth but also warned that
inflation will prove less predictable, according to an interview
with the Telegraph newspaper.
It may be too soon to call a "roaring twenties" scenario,
but it certainly means "very rapid growth at least over the next
couple of quarters" particularly as the economy will be boosted
by people simply saving less, Broadbent said in remarks
published Saturday evening in the Telegraph newspaper.
(Reporting by Ritvik Carvalho; Editing by Ana Nicolaci da Costa
and Ed Osmond)