Asian session: The U.S. currency last week advanced versus eight Group of 10 currencies

00:00 Japan Bank holiday

The U.S. currency last week advanced versus eight Group of 10 currencies as the Fed said it will reduce the size of its bond-purchase program and reiterated that benchmark rates will remain low contingent on jobless and inflation data. U.S. inflation as measured by the core PCE price index rose 1.2 percent in November from a year earlier, compared with a 1.1 percent gain in the prior month, according to the median forecast in a Bloomberg New survey before a report today. October’s reading was the lowest since March 2011.

U.S. consumer spending, which account for about 70 percent of the economy, climbed 0.5 percent in November after a 0.3 percent increase the prior month, the Commerce Department is expected to say today, according to the Bloomberg median. Incomes probably rose 0.5 percent after a 0.1 percent drop in October, the poll predicts.

A budget deal in Washington and the Federal Reserve’s plan to taper its bond buying will allow for a new growth estimate, International Monetary Fund Managing Director Christine Lagarde said on NBC’s “Meet the Press” yesterday without specifying new figures. U.S. stocks rose Dec. 20 after a report showed the economy expanded in the third quarter at a faster rate than previously estimated.

Australia’s dollar added to its biggest advance in more than a month and traded about a cent from its three-year low.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.3670-95

GBP / USD: during the Asian session, the pair rose to $ 1.6360

USD / JPY: on Asian session the pair traded in the range of Y103.95-10

With the Christmas holiday fast approaching, Monday's calendar quietens significantly. Also, trading volumes are seen as being light, with many market players extending the holiday, along with Tokyo markets also closed for a national holiday. The European data calendar gets underway at 0800GMT, when the Spanish PPI data is released. At 0900GMT, Italian December ISTAT consumer confidence numbers are set to cross the wires. Analysts are looking for a rise from 98.3 in November to 98.7. The EMU third quarter government debt numbers are due to be published at 1000GMT.