Dollar firms ahead of busy data week with US inflation in focus

The dollar was on the front foot on Monday ahead of a packed week filled with key economic releases that will provide further clues on the global interest rate outlook, with a U.S. inflation reading taking centre stage. The core personal consumption expenditures (PCE) price index – the Federal Reserve's preferred measure of inflation – is due on Thursday, where expectations are for a 0.4% increase on a monthly basis. Inflation figures in the euro zone, Japan and Australia are also in the data calendar this week, alongside a rate decision from the Reserve Bank of New Zealand (RBNZ) and PMI readings in China.