Emerging market currencies pressured lower Speculators pare...

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    • Emerging market currencies pressured lower
    • Speculators pare bullish dollar bets to 5-week low - CFTC
    • BOE, ECB seen holding policies steady on Thursday
    • Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

    (Updates market action, adds quote)

    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."

    Sterling GBP=D3 was up as much as 1 percent versus the dollar. It was last up 0.9 percent at $1.3033, Reuters data showed.

    The euro EUR=EBS rose nearly 0.4 percent at $1.15965, while it touched a near one-month low against the pound, last down over 0.5 percent EURGBP=D4 at 88.98 pence.

    Policy-makers at the Bank of England and European Central Bank are widely expected to leave their policy unchanged at their respective meetings on Thursday.

    "It seems unreasonable to expect (Mario) Draghi to signal a course change" at the ECB, said Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman in New York. "It is an easy call: unanimous decision to hold after hiking rates last month," Thin added.

    The more 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 the euro, sterling, yen and three other currencies .DXY was down 0.24 percent at 95.140.

    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 .MIEM00000CUS fell 0.5 percent to near one-week lows. The Indian rupee INR= fell to a record low at 72.675 per dollar, while the Hong Kong dollar HKD=D3 hit the lower end of a trading band at 7.85 per U.S. dollar.

    Meanwhile, the Swedish crown SEK=D3 , which has been the worst performing currency among the majors, edged up 0.1 percent at 9.059 crown per dollar. Gains for the far right in Sunday's election were smaller than some polls had predicted - even though the country faces weeks of uncertainty as it tries to form a government.

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    	Currency bid prices at 2:26PM (1826 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.1596		$1.1551	 +0.39%		 +0.00%	  +1.1615	 +1.1527 
     Dollar/Yen	   JPY=		111.1300	   111.0500	+0.07%		 +0.00%	  +111.1800   +110.8600 
     Euro/Yen		 EURJPY=	 128.88		 128.30	  +0.45%		 +0.00%	  +129.0600   +127.8900 
     Dollar/Swiss	 CHF=		0.9749		 0.9691	  +0.60%		 +0.00%	  +0.9753	 +0.9687 
     Sterling/Dollar  GBP=		1.3030		 1.2921	  +0.84%		 +0.00%	  +1.3051	 +1.2897 
     Dollar/Canadian  CAD=		1.3160		 1.3154	  +0.05%		 +0.00%	  +1.3197	 +1.3151 
     Australian/Doll  AUD=		0.7108		 0.7106	  +0.03%		 +0.00%	  +0.7131	 +0.7099 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.1306		 1.1196	  +0.98%		 +0.00%	  +1.1315	 +1.1187 
     Euro/Sterling	EURGBP=	 0.8897		 0.8943	  -0.51%		 +0.00%	  +0.8957	 +0.8894 
     NZ Dollar/Dolar  NZD=		0.6521		 0.6533	  -0.18%		 +0.00%	  +0.6547	 +0.6513 
     Dollar/Norway	NOK=		8.3878		 8.4500	  -0.74%		 +0.00%	  +8.4564	 +8.3641 
     Euro/Norway	  EURNOK=	 9.7269		 9.7594	  -0.33%		 +0.00%	  +9.7714	 +9.6948 
     Dollar/Sweden	SEK=		9.0566		 9.0570	  +0.12%		 +0.00%	  +9.0755	 +9.0230 
     Euro/Sweden	  EURSEK=	 10.5043		10.4915	 +0.12%		 +0.00%	  +10.5087	+10.4267 
    	 
    	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
    The European Central Bank's QE Programme	http//reut.rs/2wOxrNg 
    

    USD positions http//reut.rs/2Czgrjk GRAPHIC-From QE to QT: Five questions for the ECB

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