Sterling retreated in European trade against dollar for the sixth straight session to three-week low on prospects of a UK rate cut and following weak data. 

GBP/USD fell 0.3% to 1.2954, a December 24 low, after losing 0.6% yesterday, marking the longest losing streak since mid December. 

UK rate hike futures rose 25% after statements from a BoE member who said he'll vote for a rate cut in the policy meeting this month. 

The sentiment was bolstered after GDP shrank in November by the worst margin since April, while manufacturing weakened sharply as well. 

The UK economy is expected to suffer as well in 2020 as Brexit takes place on January 31. 

USD/JPY tilted higher in Asian trade to May 23 highs following earlier trade data from Japan and ahead of US inflation data, and America and China reached a trade deal with signing scheduled on Wednesday. 

As of 06:13 GMT, USD/JPY rose 0.13% to 110.09, marking eight-month highs at 110.21, with a session-low at 109.92. 

Earlier Japanese data showed current surplus shrank to 1.437 trillion yen in November, beating estimates of 1.425 trillion. 

Banking lending rose 1.8% y/y, slowing down from 2.1% in November. 

From the US, consumer prices are expected to rise 0.2%, slowing down from 0.3% in November, while expected to rise 2.4% y/y. 

Federal Reserve Bank of New York President John Williams was due to speak about the culture in financial services at a workshop hosted by the London School of Economics.

Otherwise, the US Treasury Department took China off its list of currency manipulating- countries after putting it there in August.  

The Department said China has pledged executable commitments to avoid weakening yuan and publish forex information, bolstering yuan versus dollar to six-month highs. 

Gold futures declined in Asia off March 2013 highs as the dollar index rose off early July lows following earlier Chinese data and as America and China reach a trade deal with signing scheduled on Wednesday. 

As of 04:27 GMT, gold futures due in February fell 0.64% to $1,538.80 an ounce as the dollar index edged up to 97.38. 

Earlier Chinese data showed trade surplus up to 329 billion yuan from 274 billion in November, as both exports and imports accelerated beyond estimates last month. 

Now markets await data on Chinese GDP, expected at 1.4%, slowing down from 1.5% in the third quarter. 

From the US, consumer prices are expected to rise 0.2%, slowing down from 0.3% in November, while expected to rise 2.4% y/y. 

Federal Reserve Bank of New York President John Williams was due to speak about the culture in financial services at a workshop hosted by the London School of Economics.

Otherwise, the US Treasury Department also took China off its list of currency manipulating- countries after putting it there in August.  

The Department said China has pledged executable commitments to avoid weakening yuan and publish forex information, bolstering yuan versus dollar to six-month highs. 

Asian stock indices opened the second session of the week higher in tandem with Wall Street as America and China reach a trade deal with signing scheduled on Wednesday. 

The US Treasury Department also took China off its list of currency manipulating- countries after putting it there in August.  

The Department said China has pledged executable commitments to avoid weakening yuan and publish forex information, bolstering yuan versus dollar to six-month highs. 

Japan's TOPEX rose 0.27%, while Nikkei 225 rose 0.74% to 176.24. 

China's CSI 300 rose 0.27% to 4,215.19, while Shanghai rose 0.22%. 

Hong Kong's Hang Seng rose 0.20%, while South Korea's KOSPI added 0.78% to 2,264.54. 

New Zealand's NZX 50 rose 0.52%, as Australia's S&P/ASX 200 rallied 0.64% to 6,948.00.