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 http://tmsnrt.rs/2egbfVh

(Updates market action, changes dateline, previous London) 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.

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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)