UPDATE 1-Sterling slip against dollar; the long bare position of speculators is on the rise

* Graphic: Global FX rates in 2020 tmsnrt.rs/2egbfVh

* Graphic: Sterling with trade pressure from Brexit vote tmsnrt.rs/2hwV9Hv (Prices updated, comment)

LONDON, Feb. 8 (Reuters) – The pound slipped against a stronger dollar on Monday, but analysts were bullish on its outlook and the latest position data showed that the long-speculative position of the British currency had gone up.

The pound has strengthened against both the dollar and the euro in February, fueled by higher risk appetite in global markets, optimism about the UK’s COVID-19 vaccine spread and a reduction in expected negative rates.

Britain has introduced more than 12 million first doses of COVID-19 vaccines and is on track to meet a target to deliver everyone in the most vulnerable groups by mid-term. February.

“Sterling is largely benefiting from the vaccine race – it’s really the main difference,” said Ned Rumpeltin, head of European money strategy at TD Securities.

“It’s kind of a run out of steam here, just under $ 1.37,” he said, noting that the pound has struggled to break above that level from 2018.

At 1206 GMT, the pound fell about 0.4% against a stronger dollar at $ 1.3686.

Against the euro, it was down around 0.2% at 87.92 pence per euro.

The Bank of England announced the results of its consultation with banks on the feasibility of implementing negative rates last week.

Banks told the BoE they would need at least six months to work out how to deal with negative rates – forcing the pound to rise as investors thwarted any expectations of the past policy. to introduce.

Negative rates are “unlikely to occur over the next 6 months due to operational risks, and the need to go negative after the 6 month period will be very low as we anticipate recovery. strong economic 2Q ”, ING FX strategists Francesco Pesole and Petr Krpata wrote in a note to messengers.

“Along with the rapid vaccination, GBP is expected to benefit and GBP / USD will slowly erode higher next week,” they said. They expect cable to move towards $ 1.50 by the end of the year.

Speculators ’long net position on the pound grew more in the week to Feb. 2, according to CFTC futures data. The market has been barely bullish on the pound since early December 2020, with the UK’s relative success in vaccine distribution helping to improve sentiment.

South Africa stopped distribution of AstraZeneca COVID-19 vaccines after data showed it provided little protection from mild diseases from one variant, but Britain said the bullet stopped death and serious illness .