* Sterling gains 0.2 percent versus dollar * Obama victory dollar-negative, focus on fiscal problems * Pound eases versus euro but losses seen muted By Philip Baillie LONDON Nov 7, (Reuters) - Sterling rose against the dollar on Wednesday after investors sold the U.S. currency as victory for Barack Obama in the U.S. presidential election is seen ensuring easy monetary policy. The pound gained 0.2 percent against the dollar at $1.6030, edging off a two-week low of $1.5957 hit on Monday. The dollar had been rising in the run-up to the election amid some expectations that a victory for Republican Mitt Romney would translate to early monetary tightening. Obama's re-election was seen as status-quo and a signal that the Federal Reserve's easy monetary policy is likely to stay. That weighed on the dollar and gave a boost to commodity currencies like the Australian and Canadian dollars. "The initial assumption among traders today was that Obama's victory would be dollar-negative and it has displayed that so far," said Michael Derks, chief strategist at FXPro. He added short covering in the euro and sterling was boosting both currencies. But the dollar's weakness is likely to be temporary, especially with a looming 'fiscal cliff' of tax hikes and spending cuts due to take effect in January. The Democrats retained a majority in the Senate but the Republicans held control of the House of Representatives, all of which could lead to tough negotiations over the fiscal problems and potentially prompting safe-haven flows into the dollar. Sterling was lower against the euro. The euro was up 0.2 percent at 80.15 pence, holding above a one-month low of 79.74 pence hit on Tuesday. Losses in the pound could be limited, however, as investors fret over a vote before parliament in Greece on further austerity measures. If the vote fails in parliament, international lenders will withhold an aid tranche for the struggling economy, a factor that will weigh on the single currency. Market players are betting that there will be no more easing from the Bank of England's monetary policy committee (MPC) on Thursday, a factor helping the pound in recent weeks, although members are split on more quantitative easing (QE). Most investors expect rates to be held and asset purchases to be held at 375 billion pounds, expecting the central bank to hold fire on more easing until early next year. The European Central Bank also meets on Thursday and while no rate cuts are expected, growing evidence that the euro zone is in the midst of a recession is likely to boost expectations of more easing in the coming months. "We expect little new from the ECB, with a rate cut likely next month, but the BoE's decision on whether to expand quantitative easing (QE) is on a knife-edge," ING said in a note. "We narrowly expect the BoE to hold off from further easing, which can assist EUR/GBP toward our year-end 0.78 target." Meanwhile, the Australian dollar held near 7-week highs against sterling of 65.35 pence, as the Reserve Bank of Australia held rates at 3.25 percent on Tuesday, boosting it against the pound.

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