Dollar falls on rise in sterling

The greenback erased intra-day gains made in Asia and European morning and ended Monday lower across the board on rally in sterling. Investors also remained cautious ahead of key inflation data later this week.  
  
Versus the Japanese yen, although dollar recovered to 109.63 in New Zealand, renewed selling emerged and later knocked price down to an 11-day low of 109.20 in New York on usd's broad-based weakness.  
  
The single currency retreated from 1.2172 at Asian open to 1.2145 in European morning and then gained in tandem with cable to session highs of 1.2201 in New York on selling in usd before trading sideways.  
  
Although the British pound fell from 1.4171 in New Zealand to 1.4112 at European open on concern over North Ireland Protocol, price erased intra-day losses and rallied to session highs of 1.4191 in New York on usd's weakness together with cross-buying in sterling before stabilising.   
  
Reuters reported U.S. President Joe Biden will warn British Prime Minister Boris Johnson not to renege on the Northern Ireland Brexit deal when they meet for the first time at the G7 summit this week, The Times reported on Monday, citing unidentified sources.    Biden, who is proud of his Irish heritage, will use a meeting with Johnson on Thursday to explicitly express U.S. support for the Protocol. He will also warn that the prospects of a U.S. trade deal with the United Kingdom will be damaged if the situation remains unresolved,  Biden will also make it clear to the European Union that he expects it to stop being "bureaucratic" and adopt a more flexible approach to the implementation of the agreement, The paper reported.
  
Data to be released on Tuesday :  
  
UK BRC retail sales, Japan current account, trade balance, GDP deflator, GDP, Economy Watchers outlook, Economy Watchers current, Australia NAB business conditions, NAB business confidence, Germany industrial output, ZEW economic sentiment, ZEW current conditions, France current account, trade balance, imports, exports, Italy retail sales, EU employment change, GDP, ZEW survey expectations, Canada leading index, trade balance, exports, imports, and U.S. trade balance, redbook, JOLTS job openings.