September 10, 2018 / 2:37 PM / 16 days ago

FOREX-Euro, sterling rise on hopes for Brexit deal

    * Emerging market currencies pressured lower
    * Speculators pare bullish dollar bets to 5-week low - CFTC
    * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline, previous London)
    By Richard Leong
    NEW YORK, Sept 10 (Reuters) - The euro and sterling rose
against the dollar on Monday after the European Union's top
negotiator said an agreement for Britain to leave the economic
bloc might be reached in the coming weeks.
    The pound in particular had been under pressure in recent
weeks on anxiety that Britain would exit from the EU without any
formal trading arrangement.
    "Sterling bears have been caught off side. The euro is also
getting a bump as people are jumping on a 'risk-on' sentiment,"
said Dean Popplewell, vice president of market analysis at
OANDA, in Toronto.
    EU chief negotiator Michel Barnier told a forum in Slovenia
a Brexit deal was "realistic in six to eight weeks."

    The sterling was up as much as 1 percent versus the
dollar. It was last up 0.8 percent at $1.3025, Reuters data
showed.
    The euro rose nearly 0.5 percent at $1.16090, but
was down 0.4 percent at 89.105 pence.
    Positive view on Brexit reduced safe-haven holdings of the
dollar whose decline was limited by an upbeat U.S. jobs report
released on Friday and lingering worries about emerging market
currencies, analysts said.
    An index that tracks the dollar against euro, sterling, yen
and three other currencies was 0.3 percent lower at
95.059.
    Speculators' net long bets on the U.S. dollar fell to a
five-week low, worth $20.60 billion in the week ended Sept. 4,
according to calculations by Reuters and Commodity Futures
Trading Commission data released on Friday.
    An index for emerging market currencies fell
0.4 percent to near one-week lows. The Indian rupee fell
to a record low while the Hong Kong dollar hit the
lower end of a trading band.
    "We have had strong U.S. jobs data which has cemented market
expectations of at least 2 more rate hikes this year and that
doesn't bode well for emerging markets," said Piotr Matys, a
markets strategist at Rabobank in London.
    Meanwhile, the Swedish crown, which has been the
worst performing currency among the majors, rose 0.2 percent
versus the dollar after gains for the far right in Sunday's vote
were smaller than some polls had predicted - even though the
country faces weeks of uncertainty as it ties to form a
government.    
========================================================
    Currency bid prices at 10:24AM (1424 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1606        $1.1551     +0.48%         +0.00%      +1.1615     +1.1527
 Dollar/Yen       JPY=        111.0600       111.0500    +0.01%         +0.00%      +111.1800   +110.8600
 Euro/Yen         EURJPY=     128.92         128.30      +0.48%         +0.00%      +129.0600   +127.8900
 Dollar/Swiss     CHF=        0.9724         0.9691      +0.34%         +0.00%      +0.9747     +0.9687
 Sterling/Dollar  GBP=        1.3031         1.2921      +0.85%         +0.00%      +1.3051     +1.2897
 Dollar/Canadian  CAD=        1.3157         1.3154      +0.02%         +0.00%      +1.3197     +1.3151
 Australian/Doll  AUD=        0.7126         0.7106      +0.28%         +0.00%      +0.7131     +0.7099
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1287         1.1196      +0.81%         +0.00%      +1.1302     +1.1187
 Euro/Sterling    EURGBP=     0.8905         0.8943      -0.42%         +0.00%      +0.8957     +0.8896
 NZ Dollar/Dolar  NZD=        0.6543         0.6533      +0.15%         +0.00%      +0.6547     +0.6513
 Dollar/Norway    NOK=        8.3674         8.4500      -0.98%         +0.00%      +8.4564     +8.3641
 Euro/Norway      EURNOK=     9.7129         9.7594      -0.48%         +0.00%      +9.7714     +9.6948
 Dollar/Sweden    SEK=        9.0295         9.0570      -0.10%         +0.00%      +9.0755     +9.0230
 Euro/Sweden      EURSEK=     10.4814        10.4915     -0.10%         +0.00%      +10.4890    +10.4267
           

    
 (Additional reporting by Saqib Iqbal Ahmed in New York
Saikat Chatterjee in London
Olof Swahnberg in Stockholm;
Editing by Alison Williams and Alistair Bell)
  
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