Investing.com - The U.S. dollar was flat on Monday in Asia ahead of the release of the latest inflation data. The potential signing of the phase one trade deal later this week is also in focus.
The U.S. dollar index that tracks the greenback against a basket of other currencies last traded at 97.078 by 11:35 PM ET (03:35 GMT), unchanged from yesterday’s close.
The latest U.S. inflation figures, due on Tuesday, are expected to remain broadly in line with the 2% inflation target, while retail sales numbers from the holiday season will also be closely watched.
A number of Federal Reserve officials will also speak this week. Boston Fed President Eric Rosengren and Atlanta Fed head Raphael Bostic will both discuss the economic outlook in appearances on Monday. Kansas City Fed President Esther George is due to deliver remarks on Tuesday, while Patrick Harker of the Philadelphia Fed and Robert Kaplan of the Dallas Fed are both due to make appearances on Wednesday.
The GBP/USD pair dropped 0.2% to 1.3036. Figures on fourth-quarter growth, trade, industrial output, retail sales and inflation all due to be released this week. The data will be closely watched after Bank of England Governor Mark Carney last week promised a "relatively prompt response" if economic weakness persists.
On the Brexit front, the U.K. is due to leave the EU on Jan. 31. It is uncertain whether 11 months will be enough to reach a deal. EU chief Ursula von der Leyen has earlier warned that a comprehensive U.K.-EU trade deal is “impossible” by the 2020 deadline.
"We will go as far as we can, but the truth is that our partnership cannot and will not be the same as before and it cannot and will not be as close as before because with every choice comes a consequences with every decision comes a trade off,” she said earlier this month.
The AUD/USD pair and the NZD/USD pair both rose 0.2%.
The safe-haven yen retreated as Asian equities traded higher today. The USD/JPY pair slid 0.2% to 109.62.
The USD/CNY pair lost 0.2% to 6.9004. China’s GDP data is due later this week.