Asian session: The dollar held gains

01:30 Australia New Motor Vehicle Sales (MoM) June 0.0% 4.0%

01:30 Australia New Motor Vehicle Sales (YoY) June +0.2% 7.1%

02:00 China Retail Sales y/y June +12.9% +12.9% +13,3%

02:00 China Fixed Asset Investment June +20.4% +20.3% +20.1%

02:00 China Industrial Production y/y June +9.2% +9.1% +8.9%

02:00 China GDP y/y Quarter II +7.7% +7.7% +7.5%

The dollar held gains against the yen and euro from the end of last week before U.S. data on retail sales today that may add to the case for the Federal Reserve to reduce monetary stimulus. The U.S. Commerce Department is likely to say today that retail sales rose 0.8 percent in June, according to the median estimate of economists surveyed by Bloomberg News. It would be the fastest gain since February.

The Bloomberg Dollar Index last week posted its first drop in a month after Fed Chairman Ben S. Bernanke signaled that bond buying won’t be dialed back soon. He is scheduled to speak on monetary policy this week.

Australia’s dollar rose against major peers as Chinese data showed growth slowed in line with economist forecasts. China’s economy, the world’s second biggest, grew 7.5 percent in the April-June period, the National Bureau of Statistics said in Beijing today, matching the median estimate of economists in a Bloomberg poll. It expanded 7.7 percent in the first quarter.

The pound was near a four-month low versus the euro before the Bank of England releases minutes on July 17 of its policy meeting held this month. After its first policy meeting led by new BOE Governor Mark Carney, the central bank said on July 4 that “the implied rise in the expected future path of bank rate was not warranted by the recent developments” in the U.K. economy. In the poll of 43 analysts, 23 said the governor will opt to link a pledge on loose policy to economic data.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3050/75

GBP / USD: during the Asian session the pair traded in the range of $ 1.5095/25

USD / JPY: during the Asian session the pair traded in the range of Y99.05/35

There is a very light calendar on Monday, with no data set for release in Europe and only limited central bank speakers. Markets are largely on hold, as the appearance on Capitol Hill later in the week from Fed Chairman Ben Bernanke is the main focus. ECB Executive Board member Joerg Asmussen is slated to give a lecture on "European perspectives in EMU Economic and Financial Policy", in Schwerin, Germany, at 1500GMT. Later, at 2000GMT, the Treasury Under Secretary for Intl Affairs Lael Brainard discusses G20 finance ministers meeting in Russia.