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FOREX-U.S. dollar rises as selling takes a pause, but downtrend intact

    * Pound sinks broadly on Brexit jitters
    * Dollar bid higher after recent weakness
    * Quiet trading among G10 majors
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Dec 8 (Reuters) - The dollar gained on Tuesday, taking a breather from a sell-off that took
it to its lowest in more than 2-1/2 years last week, as U.S. equities came under pressure after recent
gains, while sterling slid as investors awaited the outcome of Brexit trade-deal talks.
    "Any good news we had on the vaccines last week has been fully priced in, said Ron Simpson, managing
director, global currency analysis, at Action Economics in Tampa, Florida.
    "So I don't think there's anymore vaccine upside for equities. If equities remain under pressure,
we're going to see the dollar hold its own in the short term."
     An index tracking the dollar's value rose 0.1% to 90.978.
    Upbeat economic sentiment data from Germany lifted the euro earlier in the session, but it was last
flat to slightly lower at $1.2104.
    German investor sentiment soared more than expected in December on expectations that vaccines against
the coronavirus would boost the outlook for Europe's largest economy.
    The ZEW economic research institute said its survey of investors' economic sentiment moved up to 55.0
from 39.0 in the previous month. A Reuters poll had forecast a reading of 45.5.
    So far this year, the euro has gained more than 8% versus the greenback.
    Tuesday's big mover was sterling, which sank against both the dollar and the euro. 
    With only three weeks to go for Britain to fully complete its exit from the European Union, leaders
have failed to narrow differences on a post-Brexit trade deal.
    Against the dollar, the pound was last 0.4% lower at $1.3323 It was also 0.6 lower against
the euro, which rose to 90.82 pence .
    "The market base case is clearly still a (slim) trade deal when judged from prediction and betting
markets," said Andreas Steno Larsen, chief global strategist at Nordea. 
    "No one really dares to call the no deal with WTO-tariffs scenario ... we could still have a grim
trading period ahead for the GBP if negotiations break down."
    Implied volatility on the pound - a measure of expected future swings in the currency - hit
eight-month highs, a sign that traders were preparing for gyrations.
    The dollar was up 0.1% against the yen at 104.16 yen, but it slipped 0.1% versus the Swiss
franc to 0.8896 franc.
    Overall, the dollar's weak trend remained firmly entrenched, analysts said.
    "The dollar is going to remain under pressure in 2021 and continue heading lower as economies reopen
and also because there's going to be a lot of demand for emerging market currencies," Action Economics'
Simpson said.
    
    ========================================================
    Currency bid prices at 10:43AM (1543 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Dollar index                 $90.9770       90.8790     +0.12%         +0.00%      +91.0180    +90.7500
 Euro/Dollar                  $1.2105        $1.2109     -0.03%         +7.97%      +1.2134     +1.2096
 Dollar/Yen                   104.1800       104.0700    +0.13%         -4.06%      +104.1950   +104.0300
 Euro/Yen                     126.10         125.99      +0.09%         +3.40%      +126.2500   +125.8700
 Dollar/Swiss                 0.8892         0.8909      -0.19%         -8.11%      +0.8914     +0.8882
 Sterling/Dollar              1.3313         1.3383      -0.49%         +0.41%      +1.3391     +1.3289
 Dollar/Canadian              1.2808         1.2800      +0.07%         -1.40%      +1.2811     +1.2769
 Aussie/Dollar                0.7403         0.7419      -0.21%         +5.52%      +0.7435     +0.7400
 Euro/Swiss                   1.0764         1.0785      -0.19%         -0.81%      +1.0799     +1.0764
 Euro/Sterling                0.9091         0.9049      +0.46%         +7.53%      +0.9116     +0.9051
 NZ                           0.7037         0.7042      -0.06%         +4.59%      +0.7053     +0.7023
 Dollar/Dollar                                                                                  
 Dollar/Norway                8.7760         8.7515      +0.44%         +0.21%      +8.7900     +8.7250
 Euro/Norway                  10.6240        10.5853     +0.37%         +7.99%      +10.6430    +10.5779
 Dollar/Sweden                8.4792         8.3959      +0.90%         -9.29%      +8.4934     +8.3910
 Euro/Sweden                  10.2640        10.1723     +0.90%         -1.96%      +10.2815    +10.1675
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in LONDON; Editing by
Kirsten Donovan)
  
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