* Euro gain vs dollar but rise is limited
* Vaccine hopes trump rising cases for now
* Asian economic data boosts sentiment, China's yuan
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new quote, chart, latest prices)
By Tommy Wilkes
LONDON, Nov 16 (Reuters) - The euro inched higher on Monday,
as investors began the week in a relatively upbeat mood after
strong economic data from Asia and on hopes for a successful
vaccine against COVID-19.
Despite fears of a resurgence of global cases of COVID-19,
investors remain hopeful a working vaccine could rescue the
global economy, helping to fuel a rally in stock markets and a
rebound in riskier currencies.
The euro rose 0.3% to a one-week high of $1.1869 EUR=EBS
and was last up 0.1% at $1.1843. The dollar, measured against a
basket of currencies, was little changed at 92.657 =USD .
Commerzbank analysts said investor confidence that the euro
region was better prepared to launch more fiscal stimulus than a
divided U.S. Congress was helping.
"In particular as the positive news about vaccine developers
are providing a glimmer of hope at the end of the corona tunnel
the FX market is likely to prefer an active fiscal reaction over
inactivity," said Commerzbank strategist Ulrich Leuchtmann.
"If the end of the pandemic is foreseeable the tactic of
pushing the European economies over lockdown with the help of
fiscal policies makes sense again to FX traders."
In a sign of the positive mood, currencies sensitive to
global sentiment such as the Norwegian crown EURNOK=D3
NOK=D3 and the Australian dollar AUD=D3 notched up solid
gains.
The Aussie, up 0.5% at $0.7309, held firm after the Reserve
Bank of Australia governor said the bank would consider negative
interest rates only if all major central banks took their rates
below zero, an "incredibly unlikely" scenario. Adding to investor optimism was data on Monday showing signs
of economic recovery in China and Japan, the world's second and
third largest economies, as well as 15 Asia-Pacific economies on
Sunday signing the China-backed Regional Comprehensive Economic
Partnership deal. The Chinese yuan firmed 0.4% in offshore markets to a
one-week high of 6.5661 yuan per dollar CNH=EBS .
Trade talks between Britain and the European Union resumed,
although initial confidence that the two sides could make
progress dissipated and the gains in the pound were short-lived.
Sterling rallied to as high as $1.3242 GBP=D3 before
settling at $1.3195, down slightly. Against the euro the pound
slipped marginally to 89.70 pence EURGBP=D3 .
Ireland's foreign minister said Britain and the EU had a
week to 10 days to find a way to unlock the talks. ING analysts said even with an extension to the talks the
time for ratification was "dangerously shrinking", with
Britain's Brexit transition period concluding on Dec. 31.
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U.S. dollar vs offshore Chinese yuan https://tmsnrt.rs/3lFg7Sg
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