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* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
(Adds chart and detail, updates prices)
By Olga Cotaga
LONDON, Nov 24 (Reuters) - Demand for riskier assets on
Tuesday kept sterling close to the two-month high it reached the
day before, with investors also hoping that this week's Brexit
talks will result in a deal.
News on Monday that AstraZeneca's vaccine for the
coronavirus could be around 90% effective boosted sentiment.
British Prime Minister Boris Johnson said on Monday that he
hoped almost all Britons at high risk from COVID would be
vaccinated against the disease by Easter.
England will introduce a new system on Dec. 15 allowing
passengers arriving from high-risk countries to take a COVID-19
test after five days of quarantine and to be released from any
further self-isolation if they test negative.
In addition, the one-month full lockdown in England is due
to end on Dec. 2, and transport secretary Grant Shapps is set to
scrap blanket travel quarantine restrictions by Christmas so
people can travel to high-risk countries to visit relatives.
The November flash purchasing managers index came in better
than expected on Monday, adding to the optimism, although the
number remained below 50, which represents contraction.
Sterling was stronger in early morning trading, but gave
back some of those gains after data showed that British retail
sales have fallen by the most since June during this month's
lockdown across the bulk of the country.
Month-end investment flows have curtailed gains in sterling
and the pound should be trading higher on these developments,
said Marshall Gittler, head of investment research at BDSwiss
Group.
"I think the pound could continue the gains next month,
depending of course on how the Brexit talks go," he said.
The British pound was last up 0.2% at $1.3350,
close to $1.3396, its highest since Sept. 2, reached on Monday.
It was earlier at $1.3380. If it were to rise above $1.3481, the
surge would propel it to nearly a one-year high.
Versus the euro, the moves in the pound were more contained,
with the British currency trading down 0.1% versus the common
currency at 88.97 pence.
London and Brussels this week continue their negotiations to
agree a deal on their future trading relationship, though time
is now running very short as Britain's post-Brexit transition
period ends in fewer than six weeks.
Without an agreement, Britain would revert to trading with
the EU on World Trade Organisation rules, an outcome both sides
believe would disrupt their economies.
Most investors believe a deal will be clinched, even if it
is a bare-bones one that leaves some trade discussions for
later.
Traders were buying more put sterling options - as seen in
the one-month risk reversals levels - which usually means more
people are expecting the pound to fall than those expecting it
to rise in the next few weeks. The levels are not as low as they
were in mid-September, though.
(Reporting by Olga Cotaga, editing by Larry King)
