Forex Today: Trade optimism sends USD/JPY above 110, cryptos climb, US inflation eyed

Here is what you need to know on Tuesday, January 14:

Trade deal: Ahead of the Sino-American signing ceremony on Wednesday, the US dropped its tagging of China as a currency manipulator. The Chinese yuan shot higher and the upbeat mood weighed on the Japanese yen, pushing it above 110.

Investors are also encouraged by Beijing's trade balance report, which showed an increase in exports in 2019 despite the trade war and an 11% drop in commerce with the US.

EU-US trade: The European Commission's Phil Hogan heads to Washington for official trade talks with the world's largest economy. Some fear US tariffs may hurt meager growth in the old continent. Hogan's boss, EC President Ursula von der Leyen will unveil an ambitious European Green New Deal.

Fed: Raphael Bostic, President of the Atlanta branch of the Federal Reserve, has said that monetary policy is appropriate, with no need for changes. His words echo those of his peers. John Williams of the New York Fed speaks later.

The focus later shifts to the data, with the Consumer Price Index report for December. Core CPI is expected to remain at 2.3% yearly. Preview: The inflation sideshow

Cryptocurrencies have shot higher overnight, with Bitcoin hitting $8,500, the highest since November. 

GBP/USD remains on the back foot after Monday's Gross Domestic Product report disappointed by contracting by 0.3%. It joined dovish comments from officials at the Bank of England. 

Oil prices are extending their gradual climb down, with WTI hovering around $58. Gold is following a similar path, trading below $1,550.