01:30 China PPI y/y January -1.4% -1.6% -1.6%

01:30 China CPI y/y January +2.5% +2.4% +2.5%

The Dollar Index was set for the lowest close in more than a month as a winter storm swept across the U.S. and amid signs of weakness in retail sales, manufacturing and employment. Retail sales in the U.S. fell 0.4 percent in January after a revised 0.1 percent drop the prior month, according to the Commerce Department. The median forecast of 86 economists surveyed by Bloomberg called for no change.

The yen strengthened versus all of its major counterparts as Japanese equity declines boosted demand for the perceived safety of the currency.

Australia’s dollar rallied after consumer prices increased in China, the nation’s biggest trading partner. Data in China showed consumer prices increased 2.5 percent in January from a year earlier, compared to a 2.4 percent increase estimated by economists in a Bloomberg News survey. The producer price index fell 1.6 percent, in line with economists’ forecasts.

New Zealand’s dollar rose versus most of its major peers as Asian stocks extended gains and food prices in the nation rebounded. In New Zealand, food prices increased 1.2 percent in January from the prior month, when it slid 0.1 percent, Statistics New Zealand reported today in Wellington.

China is the biggest trading partner of both Australia and New Zealand.

EUR / USD: during the Asian session, the pair traded in the range of $1.3670-90

GBP / USD: during the Asian session, the pair traded in the range of $1.6640-60

USD / JPY: on Asian session the pair fell to Y101.65

Friday sees a full data calendar to start the week, with the release of the main euro area flash GDP numbers for the fourth quarter the stand out feature. Also Friday. ratings agency Moody's could issue a review on Italy, while DBRS could issue an update on the UK. The European data calendar kicks off at 0630GMT, with the release of the French Q4 GDP data, followed by the German Q4 data at 0700GMT. French data continues at 0730GMT, with the release of the Bank of France retail trade data, the fourth quarter employment numbers and the Q4 job creation data. At 0800GMT, the Spanish January final HICP numbers will cross the wires. There is further data scheduled for release at 1000GMT, including the Italian flash Q4 GDP data and the Eurozone December trade balance.