The UK Employment figures kick off the economic calendar today. Wages are up by 6.1% in the three months to the end of January.
With wages being higher than the rate of inflation it will prove difficult to cut interest rates any time soon.
Alongside this the ILO Unemployment rate has come in at 3.9% which is higher than expected. Employment reports are closely watched by the Bank of England, as they provide key data on where the economy is fairing.
Elsewhere this morning Germany has posted its Consumer Price Index. As expected, inflation has stayed at 2.7%.
As Europe’s largest economy, this is closely watched by investors as an indicator of the current state of the economy in the Eurozone.
Later today sees attention turn to the US, with the release of the Consumer Price Index. All eyes will be focused on this, as inflation in the US is expected to fall to 3.7% (from 3.9%).
Looking ahead this week there is key data for the UK, with GDP being released tomorrow morning. Markets are expecting to see no growth month on month.
On the currency front, the pound continued to drop off yesterday after last weeks rally. The pound is currently on the back foot against both the euro and the dollar after this morning’s releases.