Sterling drops on weak growth data Chinese yuan gains, yen...

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    • Sterling drops on weak growth data
    • Chinese yuan gains, yen weakens on better risk appetite

    (Adds report on China, updates prices)

    The U.S. dollar index held steady on Monday before a heavy week of economic data, while sterling was the weakest performer after tepid growth increased the likelihood that the Bank of England will cut interest rates this month.

    In the United States, consumer price data on Tuesday and retail sales data on Thursday are this week's main U.S. economic focuses. The greenback weakened on Friday after U.S. job growth slowed in December.

    The pound slipped after data on Monday showed Britain's economy grew at its weakest annual pace in more than seven years in November.

    "The UK story is a reminder that despite what may have been feared earlier, the U.S. remains in solid shape ... whereas the rest of the world's struggling," said Win Thin, global head of currency strategy at Brown Brothers Harriman in New York.

    On Sunday, another Bank of England policymaker, Gertjan Vlieghe, said he would vote for a rate cut this month unless economic data improved significantly.

    The dollar index .DXY was at 97.35, after rising to 97.53. Sterling GBP= dropped 0.48% against the dollar to $1.2996, after falling as low as $1.2959.

    The offshore Chinese yuan CNH= reached a 5-1/2-month high and the safe-haven Japanese yen JPY= dropped to a 7-1/2-month low as the imminent signing of a preliminary U.S.-China trade deal boosted sentiment.

    The yuan hit a session high after Bloomberg News reported that the United States will lift its designation of China as a currency manipulator ahead of the trade deal.

    The U.S.-China Phase 1 agreement, due to be signed at the White House on Wednesday, marks the first step toward ending a damaging 18-month trade dispute between the world's two largest economies.

    Adam Cole, an analyst at RBC Capital Markets, said that in the absence of any significant announcements over the weekend "markets have defaulted to small risk-on moves".

    The Australian dollar AUD= , which has been hurt by worries about the economic damage of the country's continuing bushfires, rose to a one-week high of $0.6919 before falling back to $0.6908, up 0.10% on the day.

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    	Currency bid prices at 2:20PM (1920 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.1137		$1.1120	 +0.15%		 -0.65%	  +1.1146	 +1.1113 
     Dollar/Yen	   JPY=		109.9400	   109.4600	+0.44%		 +0.99%	  +109.9400   +109.4500 
     Euro/Yen		 EURJPY=	 122.46		 121.74	  +0.59%		 +0.41%	  +122.4800   +121.7400 
     Dollar/Swiss	 CHF=		0.9706		 0.9723	  -0.17%		 +0.29%	  +0.9736	 +0.9695 
     Sterling/Dollar  GBP=		1.2996		 1.3059	  -0.48%		 -1.98%	  +1.3062	 +1.2962 
     Dollar/Canadian  CAD=		1.3046		 1.3050	  -0.03%		 +0.46%	  +1.3067	 +1.3033 
     Australian/Doll  AUD=		0.6908		 0.6901	  +0.10%		 -1.61%	  +0.6919	 +0.6883 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.0810		 1.0815	  -0.05%		 -0.39%	  +1.0833	 +1.0798 
     Euro/Sterling	EURGBP=	 0.8570		 0.8511	  +0.69%		 +1.37%	  +0.8582	 +0.8515 
     NZ			   NZD=		0.6634		 0.6629	  +0.08%		 -1.51%	  +0.6652	 +0.6621 
     Dollar/Dollar																				   
    
     Dollar/Norway	NOK=		8.8897		 8.8855	  +0.05%		 +1.27%	  +8.9164	 +8.8638 
     Euro/Norway	  EURNOK=	 9.9006		 9.8817	  +0.19%		 +0.64%	  +9.9133	 +9.8656 
     Dollar/Sweden	SEK=		9.4640		 9.4990	  -0.21%		 +1.25%	  +9.5288	 +9.4593 
     Euro/Sweden	  EURSEK=	 10.5418		10.5645	 -0.21%		 +0.69%	  +10.5925	+10.5395                    
 
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