Wires

Sterling headed for worst week since after December election

Olga Cotaga

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, Feb 7 (Reuters) - The pound was headed for its worst week since the British election as investors priced in the risk of Britain not being able to agree on a trade deal with the European Union in the 11 months left of the Brexit transition period.

Prime Minister Boris Johnson has said Britain will not obey the bloc's regulations, setting a hard stance on the upcoming negotiations. Some analysts say this gives Britain a weaker position against its biggest export market.

Investors are nervous that Johnson is taking a hard line in the trade talks with the EU, which need to be concluded before the end of the year to avoid a potentially disruptive break in trading relations.

The pound was last flat at $1.2933, close to its lowest level in weeks. Against the euro, which has been dragged down by a stronger dollar, sterling traded higher by 0.2% at 84.78 pence.

Still, the British currency was on course for its worst week since December, both against the euro and the dollar.

"I expect that the post-Brexit trade negotiations will continue to weigh on Britain, a country with one of the largest current account deficits in the world," said Marshall Gittler, head of investment research for BDSwiss Group.

(Reporting by Olga Cotaga; Editing by Angus MacSwan)