FOREX-Dollar loses ground, pound gains as traders eye Brexit talks

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Eimi Yamamitsu
TOKYO, Nov 16 (Reuters) - The dollar lost ground against
other major currencies on Monday, while the pound and the euro
drew strength from signs that Britain and the European Union
could make progress negotiationg a post-Brexit trade deal.
Sentiment across markets were mixed, caught between fears of
a resurgence of global coronavirus cases and hopes for a working
vaccine that could help reignite global growth.
Against a basket of currencies, the dollar softened
marginally, fetching 92.565 in Asian trade =USD .
Hopes for Brexit compromise emerged after news Dominic
Cummings, the most powerful adviser to Prime Minister Boris
Johnson, would leave Downing Street in mid-December.
Meanwhile, Britain's top Brexit negotiator David Frost said
on Sunday that Britain and the EU have made some progress in
their post-Brexit trade deal negotiations but might not succeed
in getting an agreement. "This topic remains an uncertain catalyst... The market
needs to be cautious that prices could fluctuate nervously on
news," said Sumino Kamei, senior analyst at MUFG Bank.
The British pound edged higher against the dollar GBP=D3 ,
changing hands at 1.3226 per dollar, and against the common
currency as well, and last stood at 89.61 pence per euro
EURGBP=D3 . The euro last sat 0.16% higher at 1.1854 per dollar
EUR=EBS .
Global markets surged last week on optimism that a vaccine
for COVID-19 would be available soon, with the dollar rising as
traders quit their long-yen positions.
"Currency moves which were prompted by vaccine news have
taken a pause. With no additional, positive news on the vaccine,
U.S. interest rates and stocks went into correction mode at the
end of the week, and dollar/yen fell," Masafumi Yamamoto, chief
currency strategist at Mizuho Securities said.
The yen edged higher at 104.49 per dollar JPY=EBS , having
posted its worst weekly performance since early June last week.
Undermining the greenback more broadly, the total virus
cases in the U.S. surpassed 11 million on Sunday as the pace of
the pandemic quickened.
While U.S. President Donald Trump still election refused to
concede defeat in the Nov.3, some traders have begun shifting
their attention to contenders for President-elect Joe Biden's
cabinet, analysts said.
"Over the weekend, uncertainty around the U.S. presidential
election has declined as it became more certain that Joe Biden
secured more votes, and it's easier for traders to take risks on
hopes that the next administration would soon take measures
against the coronavirus," Mizuho Securities' Yamamoto said.
The dollar could strengthen against the yen if U.S. bonds
and stocks maintain their upward moment, he added.
Trump on Sunday briefly acknowledged losing the election in
a morning Twitter post but then backtracked, saying he concedes
"nothing" and vowing to keep up a court fight that election-law
experts say is unlikely to succeed. Meanwhile, Biden focused on tackling the coronavirus
pandemic and set meetings with pharmaceutical companies
developing vaccines.
Australian dollar traders awaited upcoming events by the
Reserve Bank of Australia, with Governor Philip Lowe scheduled
to speak later in the day, while the central bank's November
meeting minutes are due on Tuesday.
Analysts also said the China-backed Regional Comprehensive
Economic Partnership deal signed by 15 Asia-Pacific economies on
Sunday partly helped risk appetite, as investors hoped the
world's biggest trade pact would boost trades and economic ties.
The Aussie firmed marginally at $0.7287 per dollar in Asian
trade, buoyed by stronger equities AUD=D3 . The kiwi was up
0.42% to $0.6874, near a 20-month high of $0.6915 marked on
Thursday NZD=D3 .
Data on Monday showed signs of economic recovery in China
and Japan, the world's second and third largest economies.
China's industrial output rose by a faster-than-expected 6.9% in
October, while Japan's economy grew at its fastest pace on
record in the third quarter. The Chinese yuan firmed following the upbeat economic data,
rising to 6.5818 per dollar, hitting its one-week high CNY= .